Costs at the Unit-Level of Activity Should Be Allocated to Products

question 29

Multiple Choice

Costs at the unit-level of activity should be allocated to products using cost drivers that are:

• A)Customer-oriented.
• B)Design-related.
• C)Volume-related.
• D)Product-related.
• E)Order-related.

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Definitions:

Bank Draft

A payment instrument issued by a bank on behalf of its customer, directing the payment of a certain amount to a named individual or entity.

Certified Check

A check guaranteed by a bank, confirming that the drawer has enough funds to cover the amount.

Drawer

In financial terms, the party that writes or issues a check or draft instructing a payment to be made.

Rebate Check

A refund or discount on products or services, often sent to consumers in the form of a check after a purchase.