Activity-Based Costing Does Not Use Volume-Based Cost Drivers

question 116

True/False

Activity-based costing does not use volume-based cost drivers.

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Definitions:

Side Table

A small, usually low table designed to be placed beside a chair or sofa for convenience in reaching items or resting drinks.

Markup Percent

The percentage added to the cost price of goods to cover overhead and profit, expressed as a portion of the cost.

Meat Slicing Machine

A device used in the preparation of food to slice meat thinly and consistently.

Percent Markup

The percentage added to the cost price of goods to achieve a selling price.