Under Both the Traditional Approach to Full Costing and Activity-Based

question 48

Multiple Choice

Under both the traditional approach to full costing and activity-based costing, there is no difference in the:

• A)total costs.
• B)assignment of overhead costs.
• C)unit cost.
• D)Both A and B.

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Definitions:

Estimated Cost

An approximation of the future cost of producing a product, completing a project, or maintaining a service.

FICA Taxes

Taxes paid by both employees and employers to fund Social Security and Medicare, based on a percentage of the employee's earnings.

Federal Unemployment Taxes

Taxes levied by the federal government on employers to fund state workforce agencies and unemployment insurance.

State Unemployment Taxes

Taxes imposed by state governments on employers, based on the amount of wages paid to employees, to fund unemployment compensation benefits.