The Production Cycle Differs from the Revenue and Expenditure Cycles

question 77

Multiple Choice

The production cycle differs from the revenue and expenditure cycles for all the following reasons except

• A)cost accounting is involved in all activities.
• B)not all organizations have a production cycle.
• C)there are no direct external data sources or destinations.
• D)very little technology exists to make activities more efficient.

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Definitions:

Monthly Compounding

A method of calculating interest whereby the interest is calculated and added to the principal amount at the end of each month.

Compounded Monthly

A term used in finance to describe a situation where interest is added to the principal balance of an investment, loan, etc., on a monthly basis, and future interest is then earned on the resulting new balance.

Compounded Quarterly

The method of computing interest that includes the original amount plus the interest accrued over periods of three months.

Annually Compounded

Refers to the process where interest is added to the principal balance once a year, allowing the interest to earn interest in subsequent years.