Which of the Following Would Not Be an Appropriate Activity

question 64

Multiple Choice

Which of the following would not be an appropriate activity base for cost analysis in a service firm?

• A)lawns mowed
• B)inventory produced
• C)customers served
• D)haircuts given

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Definitions:

Held Primarily

Indicates that the main reason for holding an asset or investment is for a specific purpose, not necessarily for immediate sale.

Amortized Book Value

The adjusted book value of an asset after accounting for amortization expenses.

Bond Investment

The act of investing in bonds, which are debt securities issued by entities to raise capital, offering fixed income over time.

Unrealized Gains

Increases in the value of an asset that has not been sold, and therefore, the gains are not yet realized as income.