​Which of the Following Is True of Traditional Financial Reporting

question 112

Multiple Choice

​Which of the following is true of traditional financial reporting?

• A) Traditional financial reporting is not mandatory but voluntary in nature.
• B) ​Traditional financial reporting must adhere to generally accepted accounting principles.
• C) ​Traditional financial reporting does not require that the report contents be verified by an independent third party.
• D) ​Traditional financial reporting is synonymous with corporate sustainability reporting.

---

Definitions:

Direct Labour Hours

Direct labour hours refer to the amount of time spent by workers directly involved in the manufacturing process of a product or service.

Cost Driver

A factor that causes or relates to a change in the cost of an activity or product.

Activity-Based Budgeting (ABB)

A budgeting approach that determines the cost of activities necessary for producing a product or service, aiming to improve cost efficiency.

Activity-Based Costing (ABC)

A costing methodology that assigns overhead and indirect costs to specific activities, thereby providing more accurate cost information.