Which of the Following Items Is Mostly Likely Managed Using

question 107

Multiple Choice

Which of the following items is mostly likely managed using a single-period order model?

• A) Christmas trees
• B) canned food at the grocery store
• C) automobiles at a dealership
• D) metal for a manufacturing process
• E) gas sold to a gas station

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate costs more accurately to products or services based on specific activities.

Activity Cost Pool

A category in activity-based costing that aggregates costs incurred from a specific activity, facilitating the assignment of those costs to products or services based on their use of the activity.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the amount of resources they consume.

Unit Product Cost

The total cost (both direct and indirect) to produce a single unit of product, typically including materials, labor, and overhead.