Activity-Based-Costing (ABC) Systems Are Generally Prevalent in Companies Seeking to Increase

question 10

Multiple Choice

Activity-based-costing (ABC) systems are generally prevalent in companies seeking to increase ____ and ____.

• A) cost accuracy and usefulness
• B) cost accumulation and cost assignment
• C) cost allocation and cost containment
• D) product costing and cost allocation

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Definitions:

Accounts Receivable

Money owed to a business by its clients (customers) resulting from the sale of goods or services on credit.

T Accounts

A tool used in accounting to represent the debit and credit sides of a transaction for individual accounts.

Trial Balance

An accounting report that lists the balances of all ledgers summarized into debit and credit columns, used to verify the accuracy of bookkeeping entries.

Stockholders' Equity

The owners' residual interest in a corporation, calculated as total assets minus total liabilities, representing the net worth.