How Does Activity-Based Costing View Overhead Costs

question 51

Multiple Choice

How does activity-based costing view overhead costs?

• A)as the responsibility of each department.
• B)as unimportant in the development of full costs.
• C)as rendering service to cost units.
• D)as caused by activities which 'drive' the costs.

---

Definitions:

Smoothing Constant

A parameter used in exponential smoothing techniques that determines the weight given to the most recent observation in forecasting.

Exponential Smoothing

A forecasting technique that applies weighted averages of past observations, giving more weight to more recent observations to smooth data.

Liquor Sales

The commercial activity of selling alcoholic beverages, which can include processes such as licensing, distribution, and retailing.

Smoothing Constant

A parameter used in exponential smoothing techniques to apply different weights to past observations in forecasting.