Activity-Based Costing Assigns Costs First to Activity Pools, and Then

question 159

True/False

Activity-based costing assigns costs first to activity pools, and then costs from activity cost pools are assigned to the cost objects benefiting from the activities.

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Definitions:

Resources

refer to assets, materials, or inputs used to produce goods and services, including natural resources, human skills, and capital.

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Production Possibilities Frontier

A graph that shows the various combinations of outputs that an economy can possibly produce given the available factors of production and the available production technology.

Recession

A transient phase of declining economic performance, with diminished trade and industrial production, often determined by a sequential fall in GDP for two quarters.