An Activity-Based Costing System Involves Identifying the Activity That Causes

question 60

Multiple Choice

An activity-based costing system involves identifying the activity that causes the incurrence of a cost; this activity is known as a:

• A)cost driver.
• B)cost applier.
• C)direct cost.
• D)cost object.

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Definitions:

Clarifying

The process of making statements or concepts less confused and more comprehensible.

Work Unit

A functional group within an organization, typically consisting of individuals working together towards a common goal or objectives.

Coordination Of Activities

The organization and alignment of different elements or actions to ensure they work together effectively towards a common goal.

Monitoring

The systematic observation, tracking, and evaluation of activities, progress, or performance to ensure objectives are met.