For External Financial Reporting,only ________ Costs Are Assigned to Products

question 4

Multiple Choice

For external financial reporting,only ________ costs are assigned to products or services.For internal financial reporting,any ________ costs can be assigned to products or services.

• A)controllable; avoidable
• B)avoidable; controllable
• C)common; unavoidable
• D)production; nonproduction

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Definitions:

Expenses

Costs incurred in the operation of a business which may include costs such as rent, utilities, payroll, and materials.

Revenues

The sum of money made through the sale of goods or services, which constitute the primary operations of a corporation.

Stockholders' Equity

A financial metric representing the residual interest in a company's assets after deducting liabilities, essentially the net assets owned by shareholders.

Common Stock

Shares representing ownership in a company, giving holders voting rights and a share in the company's profits through dividends.