If a Firm Uses Activity-Based Costing to Allocate Costs,it Does

question 39

Multiple Choice

If a firm uses activity-based costing to allocate costs,it does all but which of the following?

• A)Combine homogenous costs in appropriate pools.
• B)Select appropriate cost drivers.
• C)Calculate an appropriate rate for each pool.
• D)Allocate costs based on predetermined rates for cost pools.
• E)Apply a volume-related measure per unit of product.