The Second Step in the Preparation of Activity-Based Costing Data

question 14

Multiple Choice

The second step in the preparation of activity-based costing data is to

• A)Calculate activity cost pool rates.
• B)Develop activity cost pools.
• C)Allocate costs to products.
• D)Calculate the unit product cost.

---

Definitions:

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Mean Household Income

The average income earned by households in a specific geographical area, calculated by summing all incomes and dividing by the number of households.

Industrially Developed

Referring to countries or regions that have advanced economic bases, primarily in manufacturing and services, and high levels of income per capita.

Poverty Line

The fundamental amount of income necessary to afford a proper standard of living in a given nation.