Dividing Large Quantities into Smaller Quantities as Products Get Closer

question 251

Multiple Choice

Dividing large quantities into smaller quantities as products get closer to the final market is called _____.

• A) accumulating
• B) bulk-breaking
• C) sorting
• D) assorting
• E) dividing

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Definitions:

Activity-based Costing

A costing method that assigns costs to products or services based on the activities they require.

First-stage Allocation

The initial process of assigning overhead costs to different departments or cost centers in a business based on relevant criteria.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a factory or plant for allocating overhead costs to products.

Activity-based Costing

An accounting method that identifies the activities that incur costs and then assigns indirect costs to products based on their use of those activities.