Activity-Based Costing Uses Pre-Determined Overhead Rates to Allocate Costs

question 70

True/False

Activity-based costing uses pre-determined overhead rates to allocate costs.

---

Definitions:

Liability

Anything that is owed to other people or institutions.

Stockholders

Individuals or entities that own shares in a corporation, making them partial owners of the company and entitling them to dividends and voting rights.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs.

Ownership of Stock

Holding shares in a company, which represents a claim on its assets and earnings.