In Activity-Based Costing, Product Costs Are Assigned Based on Links

question 49

Multiple Choice

In activity-based costing, product costs are assigned based on links between activities that drive costs and the _____.

• A)liabilities of a firm
• B)resulting revenues
• C)production of specific goods
• D)pricing of specific goods

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Definitions:

Medicare Reimbursement

Payments made by Medicare to health care providers for services rendered to Medicare beneficiaries.

Certified Nursing Assistant

A healthcare professional specialized in providing care and assistance to patients in healthcare facilities under the supervision of nursing staff.

Fixed Costs

Expenses that remain constant regardless of the amount of products made or sold, including rent, wages, and insurance premiums.

Differential Analysis

A decision-making technique that involves comparing the costs and benefits of alternative actions.