From an Accounting Viewpoint,when Is a Business Considered as an Entity

question 133

Multiple Choice

From an accounting viewpoint,when is a business considered as an entity separate from its owner(s) ?

• A)Only when organized as a sole proprietorship.
• B)Only when organized as a partnership.
• C)Only when organized as a corporation.
• D)A business is always considered as an accounting entity separate from the activities of the owner(s).

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Definitions:

Cost Driver

A factor that influences or contributes to the expense of certain business operations.

Cost Pools

Groups of individual costs that are combined to allocate to cost objects, making the allocation process simpler and more standardized.

Cost Allocation

The process of distributing costs across various departments, products, or services within an organization to reflect the true expenses associated with each.

Manufacturing Structures

The organization and setup of production facilities, including the arrangement of machinery, equipment, and workflow, to efficiently produce goods.