The Approach to Overhead Costs Under Activity-Based Costing Is That

question 58

Multiple Choice

The approach to overhead costs under activity-based costing is that:

• A)overheads provide service to cost objects.
• B)overheads are caused by activities.
• C)overheads happen.
• D)overheads can be traced to cost objects.

---

Definitions:

Payments

Regular amounts of money paid by one party to another, often in exchange for goods, services, or to fulfill a legal obligation.

Ordinary Annuity

Harmony of equal contributions at the end of each cycle for a particular duration.

Expressed

Clearly stated, articulated, or otherwise made known in explicit terms.

Years

Units of time measuring 365 or 366 days, used as a standard time period for comparing durations.