Matching the Cost of an Asset with the Revenue It

question 68

Multiple Choice

Matching the cost of an asset with the revenue it is expected to produce is called

• A) adjusting.
• B) expensing.
• C) depreciation.
• D) contra-valuing.

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Definitions:

Non-Value-Added Activities

Non-value-added activities are processes or endeavors that do not contribute to the customer's perceived value of a product or service, often targeted for elimination in efficiency efforts.

Time Drivers

Factors that measure the amount of time required to perform an activity, often used to allocate costs in various accounting methods.

Inventory Management

The administration of overseeing the ordering, storing, and using a company's inventory.

Six Sigma

A set of techniques and tools for process improvement aiming at reducing defects and variability in manufacturing and business processes.