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

question 146

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 cost pool resources divided by activity driver
• B)Activity cost pool resources times activity driver
• C)Activity rate divided by activity driver consumption
• D)Activity rate times activity driver consumption

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Definitions:

Household Demographic

Information about the characteristics of individuals living in a household, such as age, income, education level, and employment status.

Fast-Food Market

The sector of the food industry that specializes in providing quick service and convenient food options to consumers.

Prospective Consumers

Individuals who are considered potential customers for a product or service, having been identified as within the target market.

Mall Intercept Interviews

A market research technique involving approaching people in public areas like malls to conduct immediate, in-person surveys.