The First Step in Activity-Based Costing Is to Assign Overhead

question 94

True/False

The first step in activity-based costing is to assign overhead costs to products, using cost drivers.

---

Definitions:

Financial Lease

A type of lease wherein the lessee has possession and control of an asset during its significant life but does not own the asset, effectively treating it as a loan with asset as collateral.

CRA

In the context of Canadian taxation, CRA stands for Canada Revenue Agency, the federal agency responsible for tax collection and enforcement.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.