The SEC and FASB Are Two Organizations That Are Primarily

question 7

Multiple Choice

The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles.It is true that

• A)they are both governmental agencies.
• B)the SEC is a private organization of accountants.
• C)the SEC relies on FASB to develop accounting standards.
• D)the SEC and FASB rarely cooperate in developing accounting standards.

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Definitions:

Janitorial Department

A division within an organization responsible for maintaining cleanliness, hygiene, and order in facilities and buildings.

Cost Allocated

The portion of expenses assigned to a specific product, service, or department within a company, as part of cost accounting practices.

Assembly Department

An Assembly Department is a section within a manufacturing facility where components are assembled into final products.

Absorption Costing

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