Allocated Costs Equals

question 1

Multiple Choice

Allocated costs equals:

• A)The number of cost pools used multiplied by the driver units.
• B)The number of cost pools used divided by the driver units.
• C)The number of driver units used multiplied by the cost per driver unit.
• D)The number of driver units used divided by the cost per driver unit.
• E)None of the above.

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Definitions:

Cost Of Goods Sold

The total costs directly tied to the production of goods sold by a company, including materials and labor.

Merchandise Inventory

Goods that a company owns and intends to sell, comprising a significant part of a retailer’s current assets.

Cost Of Goods Manufactured

The total cost incurred by a company to manufacture its products, including labor, material, and overhead costs, during a specific period.

General & Administrative

Expenses related to the general operation of a company, including salaries of executive personnel, rent, utilities, and office supplies, not directly tied to production.