In a Traditional Cost Management System,what Is the Only Type

question 53

Multiple Choice

In a traditional cost management system,what is the only type of driver that cost behaviour is assumed to be driven by?

• A)unit-based cost drivers
• B)non-unit-level cost drivers
• C)activity-based cost drivers
• D)variable-based cost drivers

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Definitions:

End-Of-Period Spreadsheet

A tool used in accounting to gather all account balances at the end of an accounting period to prepare financial statements.

Dividends

Money paid out to shareholders by a business, generally coming from the business's profits.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Retained Earnings

The portion of net income that is not distributed to shareholders but is kept by the company for reinvestment or debt payment.