Which of the Following Is the Most Appropriate and Modern

question 105

Multiple Choice

Which of the following is the most appropriate and modern definition of accounting?

• A) Electronic collection,organization,and communication of vast amounts of information
• B) The interconnected network of subsystems necessary to operate a business
• C) A means of recording transactions and keeping records
• D) The measurement,processing,and communication of financial information about an identifiable economic entity

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Definitions:

Machine-Hours

A measure of production time, indicated by the number of hours machines are operating in the manufacturing process.

Manufacturing Cost

The total cost incurred by a company to produce goods, including raw materials, labor, and overhead.

Calculated Selling Price

The calculated selling price is the price at which a product must be sold to cover its costs and achieve a desired profit margin.

Markup

The amount added to the cost price of goods to cover overhead and profit.