Which of the Following Would Most Likely Be Treated as an Activity

question 36

Multiple Choice

Which of the following would most likely be treated as an activity in an activity-based costing system?

• A)Direct labor cost
• B)Machine processing
• C)Direct materials cost
• D)Sales revenues

---

Definitions:

Product Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Oligopolists

Firms that are part of an oligopoly, a market structure characterized by a few companies dominating the market.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Land Resources

Natural assets in the form of land, including both the physical ground itself and the resources contained within it.