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:

Good and Service

Products that satisfy human wants directly (goods) or indirectly (services).

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency.

Recession

A significant decline in economic activity across the economy, lasting for months or years, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Prosperous

Characterized by financial success and good fortune; denoting a state of economic well-being and growth.