A Cost Allocation Base Refers to a ________

question 12

Multiple Choice

A cost allocation base refers to a ________.

• A)cost object
• B)sum total of costs to be allocated
• C)cost driver
• D)cost pool

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Definitions:

Effective Yield

A measure of the return on an investment, accounting for the effect of compounding interest more accurately than nominal yield.

Interest Revenue

Income earned by a company for lending money or allowing another entity to use its funds, reported on the income statement.

Temporary Decline

A short-term decrease in the value of an asset or market without indication of a prolonged downturn.

Available-For-Sale

A classification of securities that are not classified as held-to-maturity or trading securities, marked to market periodically, with changes in value reported in other comprehensive income.