The Goal of a Properly Constructed ABC System Is To

question 19

Multiple Choice

The goal of a properly constructed ABC system is to:

• A)have the most accurate cost system.
• B)identify more indirect overhead costs.
• C)develop the best cost system for an economically reasonable cost.
• D)have separate allocation rates for each department.

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Definitions:

Parol Evidence Rule

The parol evidence rule is a legal doctrine that prevents parties to a written contract from presenting external evidence that contradicts or adds to the written terms of the contract.

UCC

Stands for Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Statute of Frauds

A rule of law mandating that specific contract categories must be documented and signed by the involved parties to have legal validity.

Writing Requirement

The legal principle that certain contracts or agreements must be documented in written form to be legally binding.