Which of the Following Tasks Is Not Normally Associated with an Activity-Based

question 57

Multiple Choice

Which of the following tasks is not normally associated with an activity-based costing system?

• A) Calculation of pool rates.
• B) Identification of cost pools.
• C) Preparation of allocation matrices.
• D) Identification of cost drivers.
• E) Assignment of cost to products.

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Definitions:

Direct Materials

Raw materials that are directly used in the production of goods, identifiable as part of the finished product.

Factory Supervisor

An individual responsible for overseeing the operations and workers in a manufacturing plant or a section thereof.

Indirect Cost

Costs that are not directly traceable to a specific project, product, or activity and usually include overheads such as administration and utilities.

Direct Cost

Costs directly associated with the creation of specific products or services, including raw materials and wages.