Which of the Following Statements Is TRUE

question 197

Multiple Choice

Which of the following statements is TRUE?

• A)A vital attribute of an ABC database is the cost of individual departments.
• B)The ultimate objective of activity classification is to build homogeneous cost pools.
• C)When unbundling general ledger costs to an ABC database, we are more concerned about "How are the dollars spent?" than "What is spent?"
• D)Both b and c are true.

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Definitions:

Interest Compounded

The process whereby interest is added to the principal sum, so that from that moment on, the added interest also earns interest, leading to exponential growth.

Annuity Growth Rate

The rate at which the value of an annuity investment increases over time due to interest and investment income.

Present Value

The current estimation of a future financial sum or series of payments, when discounted at a specific rate of return.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the central bank's discount window; also used in discounted cash flow (DCF) analysis to present value future cash flows.