Process Charts Should Explicitly Reflect Everything That the Process Contributes

question 43

Multiple Choice

Process charts should explicitly reflect everything that the process contributes to

• A)cost of goods sold.
• B)cash flow.
• C)profit margins and productivity.
• D)all of the above

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Definitions:

Amortization of Prior Service Cost

The process of gradually recognizing the costs of benefits earned by employees in earlier periods in the pension expense over the service life of the employees.

Settlement/Discount Rate

The interest rate used in calculating the present value of future cash flows or the rate at which a financial transaction is settled less than its original value.

Statutory Depletion

A tax deduction method that allows an owner of natural resources to account for the reduction of reserves as a product is produced and sold.

Cost Depletion

An accounting method used to allocate the cost of extracting natural resources, such as minerals or timber, over the period of extraction.