A Company That Uses Activity-Based Costing Would Likely Allocate Costs

question 53

Multiple Choice

A company that uses activity-based costing would likely allocate costs from:

• A) service departments to production departments.
• B) service departments to products and services.
• C) service departments to production departments and then to products and services.
• D) activity-cost pools to production departments.
• E) activity-cost pools to products and services.

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Definitions:

Jointly

In cooperation or shared between two or more parties.

Severally

Individually or separately; taking responsibility or acting apart from others.

Provincial Legislation

Laws that are enacted by the legislative assemblies of provinces in a country, thus varying between provinces based on local needs and conditions.

Express Agreement

A contract where the terms are clearly stated and verbally or in writing agreed upon by all parties.