Given the Following Information, How Much Revenue Would Be Recognised

question 18

Multiple Choice

Given the following information, how much revenue would be recognised in June?

• A) $30 000
• B) $100 000
• C) $180 000
• D) $220 000

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.

First-stage Allocation

The initial process of assigning indirect costs to various cost pools in activity-based costing, before applying these costs to products or services.

Parts Administration

The management and oversight of components and parts used in manufacturing or production, including procurement, storage, and distribution.

Product-level Activity

Activities or costs in cost accounting that are directly tied to specific products, including design and setup costs.