Activity-Based Budgeting Would Separately Estimate ________

question 145

Multiple Choice

Activity-based budgeting would separately estimate ________.

• A) the cost of overhead for a department
• B) a plant-wide cost-driver rate
• C) the cost of a setup activity
• D) All of these answers are correct.

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Definitions:

Social-Cost Curve

illustrates the total cost of producing a good or service, including both private costs incurred by businesses and external costs borne by society.

Private Cost

The cost of a production activity that is directly borne by an enterprise.

Gallon

A gallon is a unit of volume measurement used primarily in the United States, equal to 3.785 liters.

Externality

An outcome from economic actions affecting external third parties not related to the activity, which could be either advantageous or detrimental.