Which of the Following Statements Is True of a Peanut-Butter

question 100

Multiple Choice

Which of the following statements is true of a peanut-butter costing system?

• A) A peanut-butter costing system typically has more-homogeneous indirect cost pools.
• B) A peanut-butter costing system broadly averages or spreads the cost of resources uniformly to cost objects.
• C) A peanut-butter costing system assumes that all costs are variable.
• D) In a peanut-butter costing system, costs of activities are used to assign costs to other cost objects such as products or services based on the activities the products or services consume.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable and inventories.

Short-Term Financing

Funding obtained for a period of one year or less, used to cover immediate needs such as working capital requirements.

Minimum Denomination

The smallest unit of value in which a security or financial instrument can be issued or traded.

Net Worth

The difference between an individual or household’s assets and liabilities.