Activity-Based Costing

question 30

Multiple Choice

Activity-based costing

• A) allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
• B) accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver.
• C) assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools.
• D) allocates overhead directly to products and services based on activity levels.

---

Definitions:

Solicited Proposal

A solicited proposal is a document created in response to a request from a potential client or customer, outlining how the sender can meet the specific needs or requirements mentioned in the request.

Unsolicited Proposal

A proposal offered without a specific request, often aiming to pitch an idea or project to a potential client or partner.

Indirect Approach

A communication strategy where the main point or request is gradually introduced, often after providing background information or building a context.

Direct Approach

A straightforward method of dealing with a situation or problem, without avoiding difficult issues.