The First Step of an Activity- Based Costing Study Determines

question 192

Multiple Choice

The first step of an activity- based costing study determines all of the following except:

• A) cost per unit of activity
• B) resources
• C) project scope
• D) key activities

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Definitions:

Completed Units

The term refers to items that have been fully manufactured, processed, or finished and are ready for sale.

Equivalent Units

A calculation used in process costing to convert partially completed units into a number of fully completed units.

First-In, First-Out

An inventory valuation method where the first items placed in inventory are the first ones to be used or sold.

Conversion Equivalent Units

A metric used in cost accounting to quantify the amount of work done on partially finished goods, measured in full unit equivalents.