Money as a Means of Payment Refers To

question 105

Multiple Choice

Money as a means of payment refers to:

• A) only actual currency.
• B) only coins and currency.
• C) only coins, currency and credit cards.
• D) anything that is generally accepted as payment for goods and services.

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Definitions:

Overhead Allocation

The process of spreading overhead costs across different departments or products based on a predetermined criteria.

Activity-Based Costing

This is a pricing technique which tags and assigns the expenses of each activity within a company to its various products and services, based on their specific consumption levels.

Overhead Cost

All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production employees.

Activity Cost Pools

Collections of all the costs associated with a particular business activity, facilitating more precise allocation of overheads.