The Term Used to Describe an Expense That Has Not

question 27

Multiple Choice

The term used to describe an expense that has not been paid and has not yet been recognized in the accounts by a routine entry is

• A) prepaid
• B) deferred
• C) accrued
• D) matched

---

Definitions:

Equivalent Units

A concept in accounting used to apportion costs to partially completed goods, converting them into the number of finished goods units.

Activity-based Management

A management approach focusing on managing activities as a way to improve customer value and profit by improving the efficiency and effectiveness of those activities.

Waste

Any unusable materials or substances involved in a process which are produced as a by-product and often require disposal.

Processing Time

The duration required to complete a particular process or activity, often used in manufacturing and operational analysis.