Which of These Is Not an Essential Characteristic of a Liability

question 33

Multiple Choice

Which of these is not an essential characteristic of a liability under the Framework?

• A) Future sacrifice of economic benefits
• B) Control
• C) Existence of a present obligation to another entity
• D) A past transaction or other past event

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of the resources consumed to produce a product or service.

Activity Rate

The cost driver rate used in activity-based costing to allocate costs to products or services based on specific activities.

Supervising Costs

Expenses related to the management and oversight of workers and production processes, including salaries of supervisors and managerial staff.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate insights into the actual costs of production or services.