Most Organizations That Use ABC Have Two Costing Systems-The Official

question 77

True/False

Most organizations that use ABC have two costing systems-the official costing system,which is used to prepare external financial reports,and the ABC system,which is used for internal decision making and for managing activities.

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Definitions:

Tender Offer

An offer made by an investor or acquiring company to purchase shares from the shareholders of a company at a specific price for a certain period.

Sale of Stock

This refers to the process of selling shares of a company to investors; this can be done via public offerings or through private sales.

Tax Avoidance

Tax avoidance involves legally exploiting the tax system to reduce tax liabilities, such as through deductions and credits, as opposed to tax evasion, which is illegal.

Tax Loss

Tax loss refers to a situation where business expenses exceed its incomes, which can be used to offset other taxable income.