The Unique Feature of an ABC System Is the Emphasis

question 174

Multiple Choice

The unique feature of an ABC system is the emphasis on ________.

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

---

Definitions:

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate the cash from operating activities.

Depreciation Expense

Depreciation Expense is an accounting method used to allocate the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over a specific period.

Amortization

The process of gradually writing off the initial cost of an asset over a period, often referring to intangible assets.

Bonds Payable

Long-term liabilities represented by bonds that a company is obligated to pay back at a specified maturity date, including principal and interest.