Activity-Based Budgeting

question 84

Multiple Choice

Activity-based budgeting

• A) builds a budget for each function.
• B) identifies only the overhead activity.
• C) classifies costs as variable or fixed with respect to the activity output measure.
• D) All of these.
• E) None of these.

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Definitions:

Retained Earnings Statement

A financial report detailing the variations in retained profits over a definite time frame.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.

Stock Dividend

Additional shares are issued to shareholders by a corporation as a payment, rather than giving out cash.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporation's charter, not necessarily reflecting their market value.