An Activity-Based Cost Allocation System

question 32

Multiple Choice

An activity-based cost allocation system:

• A)Is one form of a direct or variable costing system.
• B)Does not provide total unit cost data.
• C)Traces costs to products on the basis of activities performed on them.
• D)Does not provide for the allocation of any cost to products that cannot be directly traced to those products.
• E)Does not involve the level of detail and the number of allocations that companies make with traditional allocation methods.

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Definitions:

Laws and Ethics

The legal rules and moral principles that govern the professional conduct of individuals within a particular field.

Legal Consultation

The act of seeking expertise or advice on legal matters from a qualified lawyer or law firm.

Ethical Values

The set of moral principles and standards that guide behavior in personal and professional contexts.

Utilization Review

A health care quality assurance activity that assesses the necessity, appropriateness, and efficiency of the use of health care services, procedures, and facilities.