Which of the Following Costs Involves Transmitting Information from One

question 36

Multiple Choice

Which of the following costs involves transmitting information from one place to another?

• A)processing cost  
• B)retrieval cost  
• C)acquisition cost  
• D)communication cost

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Definitions:

Activity-based Costing

A costing method that assigns costs to products or services based on the activities they require.

First-stage Allocation

The initial process of assigning overhead costs to different departments or cost centers in a business based on relevant criteria.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a factory or plant for allocating overhead costs to products.

Activity-based Costing

An accounting method that identifies the activities that incur costs and then assigns indirect costs to products based on their use of those activities.