When Using an Activity-Based Costing System,which of the Following Is

question 83

Multiple Choice

When using an activity-based costing system,which of the following is the formula for allocating costs to products or services?

• A)Activity rate x activity driver consumption
• B)Activity rate x amount in activity pool
• C)Predetermined manufacturing overhead rate x actual activity
• D)None of these ans choices are correct.

---

Definitions:

Inventory

The total amount of goods and materials held by a company, intended for sale or used in the production of goods to be sold.

Rising Prices

A period or condition where the general level of prices for goods and services is increasing, often measured by indices such as the Consumer Price Index (CPI).

FIFO

First-In, First-Out, an inventory valuation method where goods or materials purchased first are the first to be sold or used.

LIFO

"Last In, First Out," an inventory valuation method where the last items added to inventory are considered sold first.