Activity Based Costing Allocates Overhead (Indirect Costs)to Fixed Costs Based

question 3

Multiple Choice

Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of drivers.Which of the following is one of the cost drivers that serves as a basis of cost allocation?​ 

• A) number of units produced 
• B) number of labor hours 
• C) quantity of materials used 
• D) direct equipment costs

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Definitions:

Fatty Chyme

A semi-fluid mass of partly digested food enriched with fats, that moves from the stomach to the small intestine.

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by triggering the gallbladder to contract and release bile.

Hepatic Portal Vein

A blood vessel that carries nutrient-rich blood from the gastrointestinal tract and spleen to the liver.

Amino Acids

Amino acids are organic compounds that serve as the building blocks of proteins, containing both an amino group and a carboxyl group, essential in various metabolic processes.