In Earlier Times,when Organisations Produced a Limited Variety of Products

question 217

True/False

In earlier times,when organisations produced a limited variety of products and indirect costs were a relatively small percentage of total costs,managers found that traditional costing systems were reasonably accurate and both easy and inexpensive to use.

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Definitions:

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Gross Profit Percentage

A financial ratio that expresses the gross profit as a percentage of sales revenue, indicating the efficiency of production and cost management.

Cost of Goods Sold

Costs directly related to the creation of a company's sold products, involving expenses for materials and workforce.