Which of the Following Is Not a Part of Adequate

question 46

Multiple Choice

Which of the following is not a part of adequate documents and records for fixed assets?

• A)Fixed asset journal
• B)Fixed asset subsidiary ledger
• C)Purchase order
• D)Fixed asset tags

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Definitions:

Cost Behavior

The way in which costs change in relation to variations in an organization’s activity level.

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.

Activity Level

A measurement of the volume of production or the quantity of services provided.

Activity Bases

Measures that assign costs to cost objects based on their use of activities; used in activity-based costing.