The First Step of the Activity-Based Cost Tracing Process, Resources

question 20

Multiple Choice

The first step of the activity-based cost tracing process, resources, examines

• A) Cost per input
• B) Inputs per activity
• C) Efficiency of activity performed
• D) Number of activities performed
• E) The who or what activities are performed for

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Definitions:

Selling Price

The amount for which a good or service is sold to the customer.

Outstanding Balance

Represents the total amount of money owed on a loan, credit card, or any debt, remaining to be paid.

Operating Expenses

The costs associated with the day-to-day functions of a business, excluding direct production costs.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.