Which of the Following Is Not a Role of Accounting

question 244

Multiple Choice

Which of the following is not a role of accounting in business?

• A) to provide reports to users about the economic activities and conditions of a business
• B) to personally guarantee loans of the business
• C) to provide information to external users to determine the economic performance and condition of the business
• D) to assess the various informational needs of users and design its accounting system to meet those needs

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Definitions:

Plantwide Overhead Rate

The rate calculated to allocate the total overhead costs uniformly across all products or services in a plant or factory.

Overhead Allocation Base

A measure or standard used to distribute indirect costs to various cost objects, such as products or departments, typically involving labor hours, machine hours, or cost centers.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, based on criteria such as department size or usage of overhead resources.

Machine Hours

A measure of the total operating time of machinery within a certain period.