A Version of ABC That Has Found Wide Acceptance in Service-Industry

question 92

True/False

A version of ABC that has found wide acceptance in service-industry settings is called volume-based activity-costing.

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Definitions:

Long-Term Debt

Borrowings that are due to be repaid more than one year from the date of the financial statement.

Dividend Payout

A portion of a company's earnings that is distributed to shareholders.

External Financing Needed

The additional funding a firm requires to finance its spending plans, such as investments in fixed assets or increases in working capital, beyond what can be funded by internal sources.

Dividend Payout Ratio

A metric indicating the proportion of a company's net profits paid out to its shareholders as dividends.