Companies That Use ABC Allocate All Costs Including Direct Materials

question 135

True/False

Companies that use ABC allocate all costs including direct materials, direct labor and manufacturing overhead to the product based on an activity cost allocation rate.

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Definitions:

Hospitalized Patient

A patient who has been admitted to a hospital for treatment and observation.

Restraint

A measure or device used to limit the movement or activity of a person or part of the body, often for safety or medical reasons.

Intravenous Infusion

The administration of liquid substances directly into a vein for medical treatment or nourishment.

Restraint Supplies

Equipment or devices used to limit the movement of patients for their safety or the safety of others.