Suppose That an Austrian Buys a Car from Germany with Cash

question 46

Multiple Choice

Suppose that an Austrian buys a car from Germany with cash. For Germany, this counts as a:

• A) current account credit, financial account debit.
• B) current account debit, financial account credit.
• C) current account debit, capital account credit.
• D) current account credit, financial account credit

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate expenses to cost objects based on their use of activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more precise allocation of indirect costs.

Machine-Hours

A unit of measure representing the cumulative number of hours a machine is operated within a specific time frame.

Activity Rate

A measure used to assign costs to cost objects, based on the activities that drive costs in an activity-based costing system.