Which Item Is NOT a Category in the Customer-Cost Hierarchy

question 169

Multiple Choice

Which item is NOT a category in the customer-cost hierarchy?

• A)Distribution-channel costs
• B)Organisation-sustaining costs
• C)Customer output unit-level costs
• D)Customer batch-level costs
• E)None of the above.

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Definitions:

Discount Rate

The discount rate applied in the evaluation of discounted cash flow (DCF) to calculate the current worth of future cash flows.

Proportionate Consolidation Method

The proportionate consolidation method is an accounting technique where a parent company combines a portion of its subsidiary's assets, liabilities, income, and expenses in proportion to its ownership interest in the subsidiary.

Fair Value

Fair value is the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Non-Controlling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company.