Of the Following,which Is the Best Reason for Using Activity-Based

question 171

Multiple Choice

Of the following,which is the best reason for using activity-based costing?

• A)to keep better track of overhead costs
• B)to more accurately assign overhead costs to cost pools so that these costs are better controlled
• C)to better assign overhead costs to products
• D)to assign indirect service overhead costs to direct overhead cost pools

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Definitions:

Bayes' Law

A statistical theorem that describes the probability of an event, based on prior knowledge of conditions related to the event.

Posterior Probability

The probability of an event or hypothesis being true after taking into consideration new evidence or information.

Prior Probability

The probability of an event or hypothesis before new evidence is taken into account.

Bayes' Law

A theorem in probability theory used to update the probability of a hypothesis as more evidence or information becomes available.