The Following Four Steps Are Necessary in Order to Use

question 61

Multiple Choice

The following four steps are necessary in order to use an activity-based costing system:
1) Compute the allocation rate for each activity.
2) Identify activities and estimate their total costs.
3) Identify the cost driver for each activity and then estimate the quantity of each driver's allocation base.
4) Allocate the indirect costs to the cost object.
In what order are these steps performed?

• A) 1,2,3,4
• B) 3,1,2,4
• C) 2,3,1,4
• D) 2,1,3,4

Understand the popularity and application of action learning in different regions.

Determine suitable instructional methods for realistic scenario-based management training.

Recognize the role of problem-based learning in training.

Select appropriate case-based methodologies for focused training.

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Definitions:

Fixed Overhead Spending Variance

This metric measures the difference between the actual fixed overhead costs incurred and the budgeted (or standard) fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost for the actual level of activity.

Performance Evaluation

The process of assessing the effectiveness and efficiency of individuals, teams, or systems within an organization.

Budgets

Financial plans that estimate income and expenditures for a specific period of time, often used by businesses and individuals for planning purposes.