Which statement best defines the term principal?
a. it is an arrangement in which you buy now and pay later.
b. it is the annual rate of interest a bank charges for a loan.
c. it is the original amount of money the bank loans the borrower.

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above