The UNIQUE Feature of an ABC System Is the Emphasis

question 195

Multiple Choice

The UNIQUE feature of an ABC system is the emphasis on:

• A)individual activities.
• B)department indirect-cost rates.
• C)multiple-cost pools.
• D)costing individual jobs.

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Definitions:

Income From Operations

The profit realized from a business's core operating activities, excluding deductions of interest and taxes.

Multiple-Step Income Statement

A detailed financial statement that separates operating revenues and expenses from non-operating ones, providing a clear view of a company's financial performance.

Sales Discounts

Reductions in the price of goods or services that are offered by sellers to incentivize prompt payment by buyers.

Net Sales

The revenue a company earns from its sales activities, minus the costs associated with returns, compensation for faulty or missing items, and permitted discounts.