A Key Difference Between Using Multiple Production Department Rates and Activity-Based

question 152

Multiple Choice

A key difference between using multiple production department rates and activity-based costing is

• A)the multiple production department rate method is used to distribute overhead costs to production activities and activity-based costing is used to distribute overhead costs to production departments
• B)the multiple production department rate method is used to distribute overhead costs to production departments and activity-based costing is used to distribute overhead costs to production activities
• C)the multiple production department rate method is used to distribute general and administrative costs to production departments and activity-based costing is used to distribute overhead costs to production activities
• D)the multiple production department rate method is used to distribute general and administrative costs to production departments and activity-based costing is used to distribute general and administrative costs to production activities

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Confidence Interval

A gamut of values, arising from sample statistic evaluation, with a high likelihood of encompassing the value of a mysterious population parameter.

Sample Size

The number of observations or cases used in a study or experiment, which can impact the reliability and validity of statistical results.

Variable

Any characteristic, number, or quantity that can be measured or quantified, which can vary among subjects in a study.