The Receipt of Equipment That Had Previously Been Ordered Should

question 32

Multiple Choice

The receipt of equipment that had previously been ordered should be recorded in the General Fund as a debit to

• A) Appropriations.
• B) Equipment.
• C) Encumbrances.
• D) Expenditures.

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the resources they consume.

Overhead Costs

Indirect costs of running a business that are not directly tied to a specific product or service, such as rent, utilities, and insurance.

Product Costing

The method used to assign costs to a product, including direct materials, direct labor, and overhead expenses.

Cost Driver

An activity or factor that incurs costs based on its level of use or consumption, influencing the total cost of production.