Roberts Ltd Allocates Overhead to Cost Objects Using a Two-Stage

question 7

Multiple Choice

Roberts Ltd allocates overhead to cost objects using a two-stage process. From this information, we can infer that Roberts Ltd:

• A) Uses a traditional costing system
• B) Uses an activity-based costing system
• C) Has more than one product
• D) May be using either a traditional or an activity-based costing system

---

Definitions:

Operating Cash Receipts

Operating cash receipts are the cash inflows related to a company's primary business operations, such as cash received from selling products or services.

Cash Payments

Cash payments refer to monetary transactions in which cash is used to settle the amount owed for goods or services.

Current Liabilities

Obligations or debts that a company is expected to pay off within a year, such as accounts payable and short-term loans.

Decreases

A reduction in quantity, size, or the overall level of an economic indicator or financial value.