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:

Factors Influencing

Variables or conditions that can affect the outcome of a process, decision, or behavior, often studied to predict or understand results.

Managerial Behaviour

The patterns of actions and attitudes exhibited by managers, impacting organizational performance and employee morale.

Kohlberg's Preconventional

The first level in Kohlberg's theory of moral development, where an individual's moral reasoning is based primarily on the consequences of a behavior and its direct effects on oneself.

Moral Development

Refers to the process through which individuals acquire and understand the distinctions between right and wrong, influencing their values, attitudes, and behaviors.