Which Statement Is Correct

question 50

Multiple Choice

Which statement is correct?

• A)An investment in a security at FVPL must be classified as a cash equivalent.
• B)An investment in a security at amortized cost must be classified as cash equivalent.
• C)An investment in a security held to meet short-term cash commitments must be classified as a cash equivalent .
• D)An investment in a security at FVOCI must be classified as a cash equivalent.

---

Definitions:

Activity-Based Costing

A methodology in accounting that assigns costs to products or services based on the activities and resources that are consumed in the process of providing them.

Single Plantwide Overhead Rate

A method of applying overhead to products in which support department costs are combined with all other overhead costs, and the total overhead cost is then applied to the products using a single cost driver.

Multiple Production Department Rates

Costing rates used for different departments within a production process, reflecting the varying costs associated with each department.

Allocate

To allocate means to distribute resources or duties for a specific purpose or to particular entities.