When Using an Activity-Based Costing System, Which of the Following

question 146

Multiple Choice

When using an activity-based costing system, which of the following is the formula for allocating costs to products or services?

• A)Activity cost pool resources divided by activity driver
• B)Activity cost pool resources times activity driver
• C)Activity rate divided by activity driver consumption
• D)Activity rate times activity driver consumption

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Definitions:

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time, also known as just noticeable difference (JND).

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimuli from our environment.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.