A Well-Designed Activity-Based System Helps Managers Because the Costs Are

question 53

Multiple Choice

A well-designed activity-based system helps managers because the costs are analysed in more detail and identify:

• A) volume-based costs.
• B) non-volume-based costs.
• C) overheads and volume-based costs.
• D) volume-based and non-volume-based costs.

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Definitions:

Accounts Payable Period

The amount of time it takes for a business to pay its suppliers after receiving goods or services, reflecting the company's payment policy towards its creditors.

Accounts Receivable

Sum owed by clients to a company for goods or services that have been dispatched or provided, with payment still due.

Cost of Goods Sold

Cost of Goods Sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Accounts Receivable

Outstanding amounts due to a firm from customers for goods or services already delivered.