In an Activity-Based Cost Management (ABM)system,facility-Level Costs Are Those That

question 20

Multiple Choice

In an activity-based cost management (ABM) system,facility-level costs are those that are incurred to:

• A) sustain the company's marketing program.
• B) maintain the plant's production capacity.
• C) support the research and development process.
• D) cause a change in the engineering plans for a product.

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Definitions:

Note Payable

An official pledge in writing to return a specified sum of cash, often with added interest, on a set future date.

Ledger

A book or digital record where financial transactions are entered, tracking the changes in each account associated with those transactions.

Trial Balance

An accounting report that lists the balances of all general ledger accounts at a particular point in time, used to ensure debits equal credits.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total liabilities divided by total assets.