Which of the Following Balance Sheet Accounts Is Most Likely

question 73

Multiple Choice

Which of the following balance sheet accounts is most likely to vary directly with sales?

• A)depreciation
• B)accounts receivable
• C)long-term debt
• D)common equity

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Definitions:

Activity-based Costing

A method of allocating overhead and indirect costs based on each product's or service's actual consumption of resources.

Cost Pools

A method used in cost accounting to group collected costs, which simplifies allocating costs to different products, services, or departments.

Activity Rates

Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.