A System That Focuses on Activities as the Fundamental Cost

question 179

Multiple Choice

A system that focuses on activities as the fundamental cost object and uses the costs for these activities to compile indirect costs of goods and services is

• A) appraisal costs.
• B) activity-based costing.
• C) value engineering.
• D) prevention costs.

Realize the need for information dissemination meetings for significant changes.

Understand the psychological and social needs fulfilled by meetings.

Recognize the importance of circulating a specific agenda beforehand.

Know the role of minutes and proper documentation in disseminating meeting information.

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Definitions:

Accounting

The systematic process of recording, analyzing, summarizing, and reporting the financial transactions of a business or individual.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Indirect Costs

Costs that are not directly traceable to a product, process, or activity but are necessary for the business’s overall operations, such as utilities or administrative salaries.

Stock Issue Costs

Expenses associated with issuing new shares of stock, including underwriting, legal, and registration fees.