Which of the Following States That the Business Should Use

question 132

Multiple Choice

Which of the following states that the business should use the same accounting methods from period to period?

• A) materiality concept
• B) consistency principle
• C) conservatism
• D) disclosure principle

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Definitions:

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined rate, not necessarily reflecting the actual usage of resources.

Direct Labor-Hours

The total hours worked directly on a manufacturing process or project.

Traditional Costing

An accounting method that allocates manufacturing overhead costs to products based on the volume of production resources consumed.

Direct Labor-Hours

A measure of the work done by employees directly involved in the manufacturing process, counted in hours.