Overhead Costs Are Allocated to Cost Objects in an Activity-Based

question 22

Multiple Choice

Overhead costs are allocated to cost objects in an activity-based costing system in the following manner:

• A)Overhead costs are traced to departments,then costs are traced to products.
• B)Overhead costs are traced to activities,then costs are traced to products.
• C)Overhead costs are traced to activities,then costs are traced to departments and then allocated to products.
• D)Overhead costs are traced from resources to cost objects.

---

Definitions:

Completed

Finished; fully accomplished or having reached a conclusion.

Receiver

In communication, the individual or entity that receives, interprets, and possibly responds to a message sent by another.

Encode

The act of converting ideas into a communicable form, such as language or gestures, during the communication process.

Intended Meaning

The meaning or interpretation that a communicator aims to convey to the listener or reader.