The Cost of the Management Accountant Working in the Front

question 76

Multiple Choice

The cost of the management accountant working in the front office of a company is a

• A)direct, variable, product cost.
• B)fixed period cost.
• C)fixed product cost.
• D)indirect period cost.

---

Definitions:

Capital Balances

The sum of funds invested by owners in a business along with any accumulated profits or losses.

Loss On Realization

Loss on realization occurs when the proceeds from the sale of an asset are less than its carrying amount on the books, leading to a financial loss.

Deficit

The amount by which expenditures exceed income or costs outstrip revenues, resulting in a negative balance.

Liquidation

The process of closing a business, selling its assets to pay off debts, and distributing the remaining assets to owners or shareholders.