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

question 139

True/False

Activity-based costing is the tool used in an ABM environment to assign activity costs to cost objects.

---

Definitions:

Unusual Item

An uncommon or rare event that affects a company's financial statements, not expected to recur frequently.

Accounting Principles

A set of guidelines and rules that govern the accounting procedures and financial reporting of businesses, ensuring accuracy and consistency across industries.

Fixed Asset Impairments

A reduction in the recoverable value of a fixed asset below its carrying value, recognized as a loss in financial accounting.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or abandoned and are reported separately in financial statements.