Which Costing Method Matches Costs and Revenues Most Appropriately for Generally

question 9

Multiple Choice

Which costing method matches costs and revenues most appropriately for generally accepted accounting principles?

• A) Throughput costing
• B) Absorption costing
• C) Variable costing
• D) Activity-based costing

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Definitions:

Goodwill

A non-physical asset that is recognized when a company is purchased at a price higher than the cumulative fair value of its recognizable net assets.

Interim Dividend

A dividend payment made before a company's annual earnings are calculated and finalized.

Fair Value

An estimation of a security's worth on an open market.

Ratification

This is the act of officially confirming or approving a decision or agreement, making it valid and binding.