Uniformly Assigning the Costs of Resources to Cost Objects When

question 111

Multiple Choice

Uniformly assigning the costs of resources to cost objects when those resources are actually used in a non-uniform way is called

• A)activity-based costing.
• B)menu-based costing.
• C)full product-cost allocation.
• D)variable product-cost allocation.
• E)broad averaging or peanut butter costing.

---

Definitions:

Batch

A set of goods or materials processed or produced at the same time, often used in the context of batch processing.

Split-Off Point

That point in the manufacturing process where some or all of the joint products can be recognized as individual products.

Sales Value

The total revenue attained from goods or services sold, calculated by multiplying the selling price by the number of units sold.

Absorption Costing

A costing method where all manufacturing costs, both fixed and variable, are allocated to products, thus "absorbing" them into the cost of goods sold.