The Field of Accounting That Is Concerned with External Users

question 72

Multiple Choice

The field of accounting that is concerned with external users of a company's financial information is called

• A) managerial accounting.
• B) bookkeeping.
• C) public accounting.
• D) financial accounting.
• E) auditing.

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Definitions:

Administrative Costs

Administrative costs are expenses related to the general operations of a business, including salaries of office staff, utilities, and rent.

Absorption Approach

A costing method in which all of the manufacturing costs, including both fixed and variable manufacturing costs, are absorbed into the cost of a unit of product.

Joint Products

Two or more products that are generated from a common input or production process.

Common Input

A shared resource or factor used in the production process of two or more goods or services.