Which of the Following Might Be a Reason That Allocating

question 119

Multiple Choice

Which of the following might be a reason that allocating overhead under an activity-based approach might have less manufacturing overhead allocated to the products?

• A)The general overhead cost pool is not allocated to products under activity-based costing
• B)The product mix includes products that are not similar in material and labor
• C)The product mix has all products that are similar in makeup of materials and labor
• D)None of these ans choices are correct.

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Definitions:

Doll Accessories

Items designed to complement or enhance the play value or display of dolls, such as clothing, furniture, or vehicles.

Tie-in Sale

A sales technique where one product or service can only be purchased if another product or service is bought simultaneously.

Bundling

The practice of offering multiple goods for sale as one combined product.

Metering Scheme

A pricing strategy used by firms to charge customers based on their actual usage of a service or product.