The Cost Accumulation Method Required by Generally Accepted Accounting Principles

question 33

Multiple Choice

The cost accumulation method required by generally accepted accounting principles is referred to as

• A)full costing.
• B)absorption costing.
• C)either full or absorption or absorption costing is acceptable according to generally accepted accounting principle.
• D)neither full nor absorption costing is allowed by generally accepted accounting principles.

---

Definitions:

Dividend Increase

An action by a company to increase the amount of money paid out to shareholders per share, typically signaling financial health.

Market Rate

The current market rate for interest on investments or loans available in the marketplace.

Annual Dividend

The annual dividend income a shareholder is awarded from a company.

Quarterly Dividend

A dividend payment made to shareholders four times a year, typically every three months.