In Activity-Based Costing, Supplier Costs

question 34

Multiple Choice

In activity-based costing, supplier costs

• A)must be narrower, including only the purchase price.
• B)are allocated to products arbitrarily.
• C)include costs of quality, reliability and timeliness and are assigned to products on a causal basis.
• D)all of these statements are true.

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Definitions:

Tariff

A tax imposed by a government on imports or exports of goods and services.

Import Quota

A government-imposed limit on the amount or value of goods that can be imported into a country over a specified period of time, usually to protect domestic industries.

U.S. Treasury

The federal department responsible for managing government revenue, issuing currency, and executing fiscal policy in the United States.

Foreign Producers

Companies or entities that manufacture goods or provide services outside the country of sale.