Which of the Following Does Activity-Based Costing Consider to Be

question 185

Multiple Choice

Which of the following does activity-based costing consider to be the fundamental cost object?

• A)Direct labor hours
• B)Activities
• C)Direct materials
• D)Finished goods

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Definitions:

Floor Inventory

Inventory on hand that is available for sale to customers in a retail, wholesale, or manufacturing space.

Accounts Receivable

The sum customers must pay to a business for goods or services that have been provided but not financially covered.

Building Contractor

A professional or company responsible for overseeing the construction process, including the coordination of labor, materials, and equipment.

Operating Cash Flow

The cash flow stemming from a company's usual business processes.