Overhead Costs Are Allocated to Cost Objects in an Activity-Based

question 125

Multiple Choice

Overhead costs are allocated to cost objects in an activity-based costing system in the following manner:

• A)Overhead costs are traced to departments, then costs are traced to products.
• B)Overhead costs are traced to activities, then costs are traced to products.
• C)Overhead costs are traced to activities, then costs are traced to departments and then allocated to products.
• D)Overhead costs are traced from resources to cost objects.
• E)None of the above.

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Definitions:

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