Which of the Following Activity Bases Would Be the Most

question 60

Multiple Choice

Which of the following activity bases would be the most appropriate for food costs of
A hospital?

• A)Number of cooks scheduled to work
• B)Number of x-rays taken
• C)Number of patients who stay in the hospital
• D)Number of scheduled surgeries

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Definitions:

Supplies Expense

Costs associated with consumable items or supplies used during an accounting period.

Supplies Account

An account used to track the cost of supplies used by a business during an accounting period that are not directly tied to production.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operational efficiency.

Unearned Revenue

Amounts received for goods or services that have not yet been provided, recorded as a liability until the service or product is delivered.