Characteristics of Internal Accounting Information Include All of the Following

question 105

Multiple Choice

Characteristics of internal accounting information include all of the following except:

• A)It is audited by a CPA.
• B)It must be timely.
• C)It is generally oriented toward the future.
• D)It measures efficiency and effectiveness.

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Definitions:

Time-Driven

A concept or approach where activities, costs, or operations are measured and managed based on time, often used in activity-based costing.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their consumption of resources.

Unused Capacity

The portion of a company's production capability or resources that is not currently being used in production.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate information on product costing and profitability.