Activity-Based Costing Is the Tool Used in an ABM Environment

question 77

True/False

Activity-based costing is the tool used in an ABM environment to assign activity costs to cost objects. Balance sheets can be created for any cost object of an organization.

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Definitions:

SEC

The U.S. Securities and Exchange Commission, the federal agency responsible for enforcing federal securities laws and regulating the securities industry.

FASB

stands for the Financial Accounting Standards Board, which is responsible for establishing accounting and financial reporting standards in the United States.

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.

Total Assets

The sum of all assets, both current and noncurrent, owned by an entity, reflecting the total resources at its disposal.