The total available assets are subtracted from idle assets to calculate
Correct answer: B. total assets employed
- A. market equity
- B. total assets employed
- C. total assets available
- D. stockholders' equity
Explanation
Total assets employed are found by removing idle assets from total assets available for use. Idle assets do not contribute to operating activity, so they are excluded from assets employed.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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