The Last Step in Activity-Based Costing Is to

question 22

Multiple Choice

The last step in activity-based costing is to

• A) assign overhead costs to products, using overhead rates determined for each cost pool.
• B) compute the activity-based overhead rate per cost driver.
• C) identify and classify the activities involved in the manufacture of specific products, and allocate overhead to cost pools.
• D) identify the cost driver that has a strong correlation to the activity cost pool.

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Definitions:

Assimilation

According to Piaget, the inclusion of a new event into an existing schema.

Accommodation

According to Piaget, the modification of schemas so that information inconsistent with existing schemas can be integrated or understood.

Dramatic Gains

Significant improvements or advancements in a specific area, often unexpectedly or within a short period.

Height And Weight

Physical measurements that indicate the size and mass of a human body, often used as indicators of health and development.