Examlex

Solved

The Final Step of Activity-Based Costing Assigns Overhead Costs to Pools

question 17

True/False

The final step of activity-based costing assigns overhead costs to pools rather than to products.


Definitions:

Activity-Based Costing

A financial methodology that calculates the cost of products and services by identifying activities related to production and assigning costs to each product accordingly.

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of a finished good.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific products or activities based on their consumption of resources.

Related Questions