Activity Based Costing Allocates Indirect Costs Based on Different Types

question 20

Multiple Choice

Activity based costing allocates indirect costs based on different types of cost drivers. Which of the following cost drivers serve as a basis of allocation when activity based costing is used?

• A) number of units produced
• B) direct labor hours
• C) direct material costs
• D) direct equipment costs

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Definitions:

System.out.println

A method in Java that outputs a line of text to the console or standard output.

System.out.println

A method in Java that prints a line of text to the console.

Actual Parameter

The actual value or expression passed to a function or method at the time of call, also known as an argument.

Method Call

The process of invoking a method in a program, which performs a specific task or function.