Which of These Does NOT Act as a Monitor of How

question 27

Multiple Choice

Which of these does NOT act as a monitor of how the firm is being run outside the firm?

• A)Auditors
• B)Analysts
• C)Credit rating agencies
• D)Members of the board of directors

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Definitions:

Absorption Costing

A costing approach that encompasses all costs associated with production, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the unit cost of a product.

Ending Inventory

The total value of all unsold goods a company has at the end of an accounting period.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the basic profitability of the products or services sold.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the price of a product.