Which of the Following Would Most Likely Be Treated as an Activity

question 36

Multiple Choice

Which of the following would most likely be treated as an activity in an activity-based costing system?

• A)Direct labor cost
• B)Machine processing
• C)Direct materials cost
• D)Sales revenues

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level at a given period.

Demand Curve

Graph of the amount of a product that buyers will purchase at different prices.

Microeconomics

Study of small economic units, such as individual consumers, families, and businesses.

Overhead Costs

These are ongoing expenses not directly attributed to creating a product or service but necessary for running a business, such as rent, utilities, and salaries.