Activity-Based Costing (ABC) Is a Costing Technique That Uses a Two-Stage

question 6

Multiple Choice

Activity-based costing (ABC) is a costing technique that uses a two-stage allocation process. Which of the following statements best describes these two stages?

• A) The costs are assigned to activities, and then to the products based upon their use of the activities.
• B) The costs are assigned to departments, and then to the products based upon their use of activity resources.
• C) Service department costs are allocated to the production departments, and then to the products based upon their use of the activities.
• D) Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.

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Definitions:

Sensory Retina

The part of the retina that contains photoreceptor cells (rods and cones) responsible for converting light into electrical signals for vision.

Macula Lutea

A region in the retina responsible for high-acuity vision where a high concentration of photoreceptor cells are located.

Fovea Centralis

A small pit in the retina of the eye where visual acuity (sharpness) is highest, due to a high concentration of cone cells.

Pupil

The black central opening of the iris in the eye, through which light enters the eye, adjusting in size to regulate the amount of light that enters.