Under What Conditions Might Activity-Based Costing Have a Role in Process

question 3

Multiple Choice

Under what conditions might activity-based costing have a role in process costing settings?

• A)when there are products produced with little diversity
• B)when there are products produced with homogeneous processes
• C)when multiple products are being produced
• D)when only one product is being produced

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the ledger.

Accounts

Financial records that track transactions related to a specific asset, liability, equity, revenue, or expense category.

Simple Journal Entry

A basic accounting entry used to record transactions with only one debit and one credit.

Debit

An accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.