In a Responsibility Accounting System,costs Are Classified into Categories on the Basis

question 153

Multiple Choice

In a responsibility accounting system,costs are classified into categories on the basis of

• A)fixed and variable costs.
• B)prime and overhead costs.
• C)administrative and nonadministrative costs.
• D)controllable and noncontrollable costs.

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Definitions:

Default

Failure to fulfill a legal obligation or agreement, commonly referring to the inability to make timely payments on a loan.

Payment of Rent

The act of providing monetary compensation typically on a monthly basis, by a tenant to a landlord, for the use of property such as residential housing or commercial space.

Exclusive Possession

The right of a tenant or lessee to use and control a property to the exclusion of others, including the landlord.

General Repair

Maintenance or fixing tasks performed to restore or maintain something, often a vehicle or building, in its original or functional condition.