Because EDI Transactions Are Business Contracts and Often Involve Large

question 12

Multiple Choice

Because EDI transactions are business contracts and often involve large amounts of money, the existence of an independent audit log helps establish ____.

• A)secrecy
• B)integrity
• C)nonrepudiation
• D)privacy

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their activity levels.

Overhead Cost

Expenses that are not directly attributed to creating a product or service but are necessary for running the business, such as rent, utilities, and office supplies.

Products

Items or goods that are manufactured or refined for sale.

Activity-Based Costing

A costing methodology that assigns the costs of overhead activities to products or services based on their consumption of those activities, aiming to provide more accurate cost information.