Source Documents

question 49

Multiple Choice

Source documents:

• A) Include the ledger.
• B) Are the sources of accounting information.
• C) Must be in electronic form.
• D) Are based on accounting entries.
• E) Include the chart of accounts.

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Definitions:

Relevant Range

The range of activity over which a company expects its operating assumptions, such as cost behavior and sales mix, to remain valid, influencing budgeting and financial planning.

Fixed Costs

Costs that do not vary with the level of production or business activity, remaining constant even when output changes.

Variable Cost

Expenses that change in proportion to the activity or volume of business.

Persons Served

A term often used in service delivery and nonprofit sectors to refer to the number of individuals who receive services or benefits from a program.