After All Activity Costs Are Accumulated in an Activity Cost

question 12

Multiple Choice

After all activity costs are accumulated in an activity cost pool account, overhead rates are computed and costs are allocated to cost objects based on:

• A) Indirect factors.
• B) Opportunity cost principles.
• C) Cost drivers.
• D) Joint cost principles.
• E) Direct factors.

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Definitions:

Long-term Investments

Investments made to be held for more than a single fiscal year, which might include bonds, stocks, or real estate.

Stock of Other Companies

Securities representing partial ownership in other companies that can be held as investments by individuals or entities.

Cash Accounts

Cash accounts are financial accounts that keep track of cash transactions within an organization, including receipts, disbursements, and balances.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.