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.

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Definitions:

Assumptions

Beliefs or premises taken for granted without requiring conclusive evidence.

Negotiating Behavior

This encompasses the range of actions and tactics individuals or parties use during negotiations to secure desired outcomes.

Negotiator

A person who communicates with others to reach an agreement in their mutual interest.

Procedural Issues

Concerns or problems related to the methods or processes used in carrying out an activity or achieving a goal.