The Body of Rules and Procedures That Guide the Measurement

question 54

Multiple Choice

The body of rules and procedures that guide the measurement and communication of financial accounting information in the United States is known as:

• A)Standards of Professional Compliance (SPC).
• B)Generally Accepted Accounting Principles (GAAP).
• C)Generally Accepted Auditing Standards (GAAS).

---

Definitions:

Facility Level

Pertains to the activities and costs associated with maintaining a physical establishment or the overall environment where business operations occur.

Sales Price

The amount a customer pays to purchase a good or service.

Low-Volume Products

Products that are manufactured or sold in relatively small quantities compared to other products.

Cost Pool

A collection of indirect costs grouped together, typically for the purpose of allocating them to different products, services, or departments.