Account Analysis

question 159

Multiple Choice

Account analysis:

• A) does not require recording relevant cost accounts and cost drivers
• B) is subjective, requiring judgment by the analyst
• C) is more expensive than engineering analysis
• D) cannot be used for mixed costs

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Definitions:

Hidden Costs

Expenses that are not directly accounted for in the budget of a project or a product pricing, often overlooked or unknowingly incurred.

Environmental Costs

Expenses incurred by companies to prevent, detect, and correct environmental damage they have caused.

Prime

In finance, often refers to the prime rate, which is the interest rate banks charge their most creditworthy customers. In manufacturing, can also mean prime costs, which are direct costs of production.

Environmental Management Accounting

The integration of environmental and financial decision-making processes to improve environmental and economic performance.