The Following Equation Is Used for Determining Cost-Volume-Profit Relationships by Firms

question 2

Multiple Choice

The following equation is used for determining cost-volume-profit relationships by firms
Total Cost = (Unit-Level Cost ´ Number of Units)
+ (Batch-Level Cost ´ Batch Cost Driver Activity)
+ (Product-Level Cost ´ Product Cost Driver Activity)
+ (Customer-Level Cost ´ Customer Cost Driver Activity)
+ (Facility-Level Cost ´ Facility-Cost Driver Activity)

• A)using activity-based costing systems.
• B)using traditional costing systems.
• C)following generally accepted accounting principles.
• D)using game theory.

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Definitions:

NSF Check

A check that has been returned by the bank because the account on which it was drawn did not have sufficient funds.

Deposits In Transit

Funds that have been sent to a bank but not yet recorded in the bank's records, resulting in a discrepancy between the company's cash records and bank statement.

Bank Service Charge

A fee charged by a bank to a customer for account maintenance or other banking services.

NSF

An acronym for Non-Sufficient Funds, referring to a situation where a bank account does not have enough money to cover a presented check or withdrawal.