In Activity-Based Costing,expenses Associated with the Purchase of Health Care

question 50

Multiple Choice

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.

• A)batch-related
• B)product-related
• C)company wide
• D)expenditure-based

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Definitions:

Pre-tax Effect

The impact on financial results before the adjustment for taxes has been made.

Units

In accounting and financial reporting, it can refer to a measure of quantity, such as items sold or produced.

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale in real-time.

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts.