Activity-Based Costing Systems

question 52

Multiple Choice

Activity-based costing systems:

• A)Accumulate overhead costs by departments.
• B)Are less complex and therefore less costly than volume-based systems.
• C)Can be used in manufacturing firms only.
• D)Have separate overhead rates for each activity.
• E)Eliminate multiple-stage cost allocation.

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Definitions:

Labor

The human effort, including physical and mental capabilities, used to produce goods or services.

CIO

The Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.

Collective Bargaining

The process whereby labor unions and employers negotiate wages, hours, and working conditions on behalf of the employees.

Strikes

Work stoppages initiated by employees as a form of protest, typically to demand better working conditions, wages, or benefits from their employer.