The Finance Function Is Concerned With

question 28

Multiple Choice

The finance function is concerned with:

• A) producing goods or providing services.
• B) procuring materials, supplies, and equipment.
• C) building and maintaining a positive image.
• D) generating the demand for the organization's products or services.
• E) securing monetary resources.

---

Definitions:

Corporation

is a legal entity recognized by law as a separate entity from its owners, with its own rights and obligations.

Variable Costing

A costing method that includes only variable manufacturing costs in product costs and treats fixed manufacturing overhead as a period expense.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.

Carrying Value

The net amount at which an asset is valued on a company's balance sheet, considering its original cost minus any depreciation, amortization, or impairment costs.