An Encomienda Was a

question 61

Multiple Choice

An encomienda was a

• A) special title given to Spanish explorers of the New World.
• B) religious ceremony.
• C) Spanish-run community of assimilated Indians.
• D) uniform worn by conquistadores.
• E) license to exact tribute and labor from natives.

Comprehend why a shift to ABC improves the accuracy of product costs.

Appreciate the potential benefits and reasons for adopting an ABC system in diverse organizational contexts.

Analyze potential distortions in product costing and decide on the importance of adopting ABC in different scenarios.

Calculate activity rates and allocate costs accurately under ABC.

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Definitions:

Economic Performance

This term relates to how effectively an entity is utilizing its resources to generate income and manage its operations and investments.

Intangible Assets

Non-physical assets of value owned by a firm, such as patents, trademarks, goodwill, and copyright.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets, reflecting aspects like brand reputation, customer relations, and patents.

Business Combination

A merger or acquisition in which an acquirer purchases the assets or shares of another business.