_____ Is a Name for a System That First Accumulates

question 42

Multiple Choice

_____ is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity.

• A)Activity-based costing
• B)Cost-driver accounting
• C)Transaction-based accounting
• D)Transaction costing

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Fallacy of Composition

The logical error of assuming what is true of a part is also true for the whole.

Economic Activity

Any actions that involve the production, distribution, and consumption of goods and services within an economy.

Association

A group or organization formed for a specific purpose, or a connection between two or more concepts.