Which of the Following Would Most Likely Be Treated as an Activity

question 6

Multiple Choice

Which of the following would most likely be treated as an activity in an activity- based costing system?

• A)Direct materials cost
• B)Machine processing
• C)Sales revenues
• D)Direct labour cost

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Definitions:

Economies of Scope

Cost advantages that a business obtains due to a broader range of operations or production levels.

Horizontal Integration

A strategy where a company acquires or merges with other companies at the same stage of production in its industry, seeking to increase market share.

Market Diversification

The strategy of entering into new markets or creating new products to reduce reliance on a single market or product line.

Synergy

The combined effect of two or more individuals, entities, or factors that is greater than the sum of their separate effects.