Which of the Following Statements Is True of a Peanut-Butter

question 100

Multiple Choice

Which of the following statements is true of a peanut-butter costing system?

• A) A peanut-butter costing system typically has more-homogeneous indirect cost pools.
• B) A peanut-butter costing system broadly averages or spreads the cost of resources uniformly to cost objects.
• C) A peanut-butter costing system assumes that all costs are variable.
• D) In a peanut-butter costing system, costs of activities are used to assign costs to other cost objects such as products or services based on the activities the products or services consume.

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Definitions:

Action

In the context of decision-making or behavior, the process or act of doing something towards achieving a specific result or outcome.

Random Sample

A subset of a statistical population in which each member has an equal chance of being chosen.

Defective Items

Products that fail to meet quality standards or specifications.

Estimate

To determine an approximate calculation or judgment of a numerical value.