Which of the Following Statement/s Is/are True

question 38

Multiple Choice

Which of the following statement/s is/are true?

• A) A two-stage allocation process is not suitable under an activity-based costing system.
• B) Under activity-based costing, the emphasis is on the cost of activities.
• C) Under an activity-based costing system, the cost of activities may include the cost of labour.
• D) Under activity-based costing, the emphasis is on the cost of activities AND under an activity-based costing system, the cost of activities may include the cost of labour.

---

Definitions:

General Ledger Accounts

General ledger accounts encompass the complete set of financial accounts and records used by a company to keep track of its financial transactions and prepare financial statements.

Accounts Receivable

Financial obligations of customers towards a business for delivered but unsettled goods or services.

Special Journal

A type of accounting journal designed for recording a specific category of transactions, such as sales or purchases, to increase efficiency and organization.

Purchases Account

An account used in accounting to track the total cost of goods and materials purchased for production or sale.