The Times Earnings Method Is Also Called

question 2

Multiple Choice

The times earnings method is also called

• A)productivity velocity method
• B)return on investment accelerator
• C)efficiency measure
• D)the price-earnings ratio

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Definitions:

Activity Cost Pools

Groupings of individual costs associated with distinct activities in the process of costing, often used in activity-based costing.

Overhead Cost

The ongoing expense of operating a business that is not directly associated with the production of goods or services, such as rent, utilities, and office supplies.

Predetermined Overhead Rates

Rates used to allocate manufacturing overhead to products based on a predetermined formula, often involving estimated costs and activity levels.

Activity Cost Pools

Aggregations of all the costs associated with a particular activity or process, used in activity-based costing.