A Company's Chart of Accounts Includes,in Part,the Following Account Numbers

question 105

Multiple Choice

A company's chart of accounts includes,in part,the following account numbers and corresponding account titles:

-Which accounts would affect operating income?

• A)Account numbers 2,4,and 9
• B)Account numbers 3,5,7,and 9
• C)Account numbers 3,4,7,and 9
• D)Account numbers 3,4,7,8,and 9

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Definitions:

Overhead

The indirect costs of running a business that cannot be directly linked to a specific product or service, such as utilities, rent, and administrative expenses.

Activity Rate

The predetermined overhead rate used in activity-based costing to assign overhead costs to products or services based on a specific activity.

Machine Setups

The process and associated costs of configuring machinery to produce a specific product or batch of products.

Activity Cost Pool

A compilation of all the costs related to a specific activity or process in cost accounting.