In Allocating Fixed Costs to Products in Activity-Based Costing

question 32

Multiple Choice

In allocating fixed costs to products in activity-based costing,

• A)direct labor hours should always be used as the allocation base.
• B)a company should use the same allocation base that it uses for variable costs.
• C)a cost driver that is not volume-related should be used.
• D)machine hours should always be used.

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Definitions:

Open And Direct Approaches

Communications or methods that are straightforward and unambiguous, aiming for clarity and honesty.

Tie Up Loose Ends

To complete or finalize unfinished aspects of a project or situation.

Effective Listening

The act of attentively hearing, understanding, and responding to spoken messages, fostering better communication.

Listening Approaches

Varied techniques or strategies employed to improve listening skills and better understand spoken information.