The Major Disadvantage of the Account Classification Method Is That

question 21

True/False

The major disadvantage of the account classification method is that it uses few observations of aggregate cost data to estimate total fixed and variable costs.

---

Definitions:

Money Markets

The section of the financial market in which financial instruments with high liquidity and very short maturities are traded, serving the need for short-term borrowing or lending.

T-Bills

Short-term government securities issued at a discount from the face value and maturing at par, typically used as a low-risk investment.

Money Market

A financial market for debt securities with maturities of less than 1 year (short term). The New York money market is the world’s largest.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.