Which of the Following Is the Most Appropriate Definition of Accounting

question 154

Multiple Choice

Which of the following is the most appropriate definition of accounting?

• A)The information system that identifies, records, and communicates the economic events of an organization to interested users.
• B)A means of collecting information.
• C)The interconnected network of subsystems necessary to operate a business.
• D)Electronic collection, organization, and communication of vast amounts of information.

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Definitions:

Activity-Based Costing

An accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products.

Overhead Cost Per Unit

The calculation of indirect costs of production or operations spread over each unit produced or service rendered.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities they require, aimed at providing more accurate information for decision-making.

Budgeted Overhead Cost

An estimate of the total indirect costs or overheads expected to be incurred during a specified budget period.