The Approach to Overhead Costs Under Activity-Based Costing Is That

question 58

Multiple Choice

The approach to overhead costs under activity-based costing is that:

• A)overheads provide service to cost objects.
• B)overheads are caused by activities.
• C)overheads happen.
• D)overheads can be traced to cost objects.

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Definitions:

Standard Deviation

An indicator of how spread out or scattered a collection of numbers is, showing the degree to which these numbers differ from their average value.

Variability

The extent to which data points in a statistical distribution or dataset differ from the average or mean value.

Median

The middle value in a sorted, ascending or descending, list of numbers.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the values by the count of the values.