A Difference in GAAP-Based Product Costing and Activity-Based Costing Is

question 44

Multiple Choice

A difference in GAAP-based product costing and activity-based costing is that under activity-based costing

• A)All costs are classified as product and period costs whereas under GAAP they are classified by behavior.
• B)Sales less cost of goods sold is classified as gross profit whereas under GAAP this subtotal is titled contribution margin.
• C)Selling and administrative costs are allocated to products if they are incurred to provide resources that are consumed by unit-level, batch-level or product-level activities.
• D)All costs are traceable whereas in GAAP-based costing all costs are not traceable.

Evaluate the impact of civic engagement on democracy.

Understand the increasing importance of communication skills as one takes on more leadership responsibility.

Identify and apply strategies to make communication efforts effective.

Recognize all parties affected by an organization's actions and the importance of stakeholders.

---

Definitions:

Diversification

A strategy of investing in a variety of assets to reduce overall risk.

Expected Gain

The anticipated benefit or profit that arises from a specific action or investment.

Diversification

The process of spreading investment risks by acquiring a wide range of assets within a portfolio.

Expected Gain

A calculation or forecast regarding the potential benefits or profits that could be achieved in a specific situation or from a particular action.