In Implementing an Activity-Based Costing System,once the Activity Pools Have

question 22

Multiple Choice

In implementing an activity-based costing system,once the activity pools have been determined,manufacturing overhead costs can be assigned to them.This is referred to as

• A)Predetermined overhead allocation
• B)Overhead application
• C)First-stage allocation
• D)None of these ans choices are correct.

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Definitions:

Lump Sum Payment

A single payment made at a particular time, as opposed to multiple payments made over a period.

Present Value

The present fiscal value of a future sum of money or sequence of cash inflows, determined by a specified rate of return.

Perpetuity

A financial instrument or investment that generates a constant stream of cash flows with no end date.

Annuity Stream

A sequence of payments made at equal intervals, such as monthly or annually.