In Activity-Based Costing,expenses Associated with the Purchase of Health Care

question 50

Multiple Choice

In activity-based costing,expenses associated with the purchase of health care insurance for employees are ________ overhead.

• A)batch-related
• B)product-related
• C)company wide
• D)expenditure-based

---

Definitions:

Cost of Goods Sold

An accounting term representing the direct costs linked to the production of goods sold by a company, including both materials and labor.

Overapplied Manufacturing Overhead

A case where the estimated costs for manufacturing overhead outstrip the actual overhead expenditures.

Underapplied Manufacturing Overhead

Occurs when the actual manufacturing overhead costs are higher than the manufacturing overhead assigned to goods produced.

Work in Process Inventory

The account used in manufacturing to track the costs of products that are in the production process but not yet completed.