Activity-Based Costing for Manufacturing Operations Is Used to Assign

question 17

Multiple Choice

Activity-based costing for manufacturing operations is used to assign:

• A)Direct material and direct labor costs to products.
• B)Direct labor and manufacturing overhead costs to products.
• C)Manufacturing overhead costs to products.
• D)Selling and general administrative overhead costs to products.
• E)Selling and general administrative overhead and manufacturing overhead costs to products.

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Definitions:

Mark-up

The difference between the cost of a product or service and its selling price, expressed as a percentage of the cost.

Spoilage

Products or materials that have become unfit for sale or use, often leading to financial loss for a business.

Bruising

Physical damage that appears on the skin or body tissues as a result of blunt impact, characterized by discoloration and swelling.

Overhead

The ongoing administrative and operational costs of running a business that are not directly attributable to the production of goods or services.