Which Best Describes the Flow of Overhead Costs in an Activity-Based

question 74

Multiple Choice

Which best describes the flow of overhead costs in an activity-based costing system?

• A)Overhead costs \(\rightarrow\) direct labor cost or hours \(\rightarrow\) products
• B)Overhead costs \(\rightarrow\) products
• C)Overhead costs \(\rightarrow\) activity cost pools \(\rightarrow\) cost drivers \(\rightarrow\) products
• D)Overhead costs \(\rightarrow\) machine hours \(\rightarrow\) products