When Using an Activity-Based Costing System in Service Companies,the Allocation

question 55

True/False

When using an activity-based costing system in service companies,the allocation of indirect costs to the cost object is the last step of the process.

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Definitions:

Floating Charge

A security interest over a fluctuating pool of assets, such as inventory or receivables, which allows the borrower to use the assets in the course of business.

Liquidator

A person or entity appointed to wind up the affairs of a company and dispose of its assets in the event of its liquidation.

Winding Up

The process of concluding a company's affairs, settling its liabilities, and distributing the remaining assets to the shareholders or owners.

Corporations Act

The legislation governing corporate practices, including financial reporting and corporate governance, in particular jurisdictions such as Australia.