Which Type of Costing System Is Required for External Financial

question 281

Multiple Choice

Which type of costing system is required for external financial reporting?

• A) Prime costing
• B) Out-of-pocket costing
• C) Absorption costing
• D) Variable costing

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Definitions:

Work Environment

The physical and psychological conditions under which employees work, including factors such as office layout, culture, safety, and colleagues.

Biological Approach

A perspective in psychology and other disciplines that examines behavior and thought processes through biological factors, such as genetics and neurochemistry.

Ergonomics

The study and design of equipment, systems, and processes that fit the human body and its cognitive abilities, aimed at optimizing human well-being and overall system performance.

Medical Claims

Requests for payment that individuals or healthcare providers submit to insurers for services received, based on covered health care provided.