Which of the Following Is Not an Example of Business

question 23

Multiple Choice

Which of the following is not an example of business investment?

• A)net additions to inventory
• B)spending on new equipment
• C)buying stocks and bonds
• D)capital accumulation

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate insights into the true costs of production.

Activity Rates

In activity-based costing, the cost allocation rate for each activity cost pool, allowing for more accurate product or service costing.

Customer Margin

The profit margin that is generated from a specific customer, calculated by subtracting the costs associated with serving that customer from the revenue earned from them.

Idle Capacity

Unused or underused production capacity within a business, often leading to inefficiency and increased costs.