In General,it Is Easier To

question 70

Multiple Choice

In general,it is easier to:

• A)adjust final prices rather than input prices.
• B)adjust input prices rather than final prices.
• C)change wage rates for employees than other input prices.
• D)change input prices than wage rates for employees.

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Definitions:

Activity-Based Costing

A costing methodology that allocates overhead costs to specific products or services based on their consumption of resources or activities.

Factory Overhead Cost

Costs associated with manufacturing operations that cannot be directly traced to specific products, including expenses like utilities and maintenance for production facilities.

Activity Allocations

This refers to the process of assigning costs to specific cost objects based on their use of activities, often used in management accounting for better cost control.

Single Plantwide Factory Overhead Rate

A costing method where a single overhead rate is applied to all units produced, regardless of the department in which they were manufactured.