What Is the Primary Factor Causing a "Cost" Called

question 142

Multiple Choice

What is the primary factor causing a "cost" called?

• A)Cost driver
• B)Cost allocation
• C)Materials requisition
• D)Predetermined manufacturing overhead rate

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Asset Impairments

The reduction in the recoverable value of a fixed asset or goodwill below its book value, reflected in the financial statements as an expense.

Future Cash Flows

Estimated amounts of money expected to be received or paid out by an entity in the future as a result of financial transactions or business operations.