What Might Be a Reason to Not Change from a Traditionally

question 61

Multiple Choice

What might be a reason to not change from a traditionally based costing system to an activity-based costing system?

• A)Products or services are similar in volume and activity.
• B)Support services are spread evenly throughout the company's activities.
• C)Overhead is a low component of the overall cost.
• D)All of the above are valid reasons.

Understand how to structure and organize written business messages for clarity and impact.

Gain proficiency in revising and proofreading business documents.

Learn techniques for emphasizing key points within a sentence or a document.

Recognize and apply effective strategies for beginning and concluding messages, including the management of tone.

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Definitions:

Present Value

Present value is a financial concept that describes the value of an expected income stream determined as of the date of valuation.

Lease Payments

Regular payments made by a lessee to a lessor in exchange for the right to use an asset, such as real estate or equipment.

Bonds Payable

Long-term liabilities representing money owed by an entity to bondholders, to be paid back at a specified future date with interest.

General Journal Entry

A record of financial transactions in the general journal that includes the date, accounts affected, amounts, and a brief description.