Which One of the Following Is Not a Difference Between

question 160

Multiple Choice

Which one of the following is not a difference between a retail business and a service business?

• A) in what is sold
• B) the inclusion of gross profit in the income statement
• C) accounting equation
• D) merchandise inventory included in the balance sheet

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Definitions:

Batch-level Activities

Operations or tasks that are performed for each batch of products, regardless of the size of the batch.

Units

Generally refers to the quantitative measure of output or production in business operations.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products based on a certain activity base, such as labor hours or machine hours.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, thereby providing more accurate product costing.