Most Private Firms Seek to

question 22

Multiple Choice

Most private firms seek to

• A)maximize revenue.
• B)maximize profit.
• C)minimize headcount.
• D)maximize employee salaries.

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Definitions:

Activity-Based Costing

A method in accounting that assigns costs to products and services based on the resources they consume.

Direct Materials Cost

The expense incurred for materials that are an integral part of a finished product, which can be directly attributed to the product itself.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the resources they consume, aiming to provide more accurate cost information.

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent and utilities.