An Activity-Based Costing System Uses Which of the Following Procedures

question 30

Multiple Choice

An activity-based costing system uses which of the following procedures?

• A)Overhead costs are traced to departments, then costs are traced to products.
• B)Overhead costs are traced to activities, then costs are traced to products.
• C)Overhead costs are traced directly to products.
• D)All overhead costs are expensed as incurred.

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Definitions:

Descriptive Contingency

This refers to the assertion that there is no one universally applicable set of management principles (by structure or strategy), but that it depends on various external and internal constraints.

Descriptive Theories

Theories that explain and understand phenomena by describing patterns, behaviors, and relationships.

Effective

The degree to which something is successful in producing a desired or intended result; efficiency in achieving goals.

Influence Tactics

Methods or strategies used by individuals or leaders to persuade or guide the behavior and attitudes of others toward desired outcomes.