Using Activity-Cost Rates Rather Than Department Indirect-Cost Rates to Allocate

question 158

Multiple Choice

Using activity-cost rates rather than department indirect-cost rates to allocate costs results in different product costs when ________.

• A) a single activity accounts for a sizable portion of department costs
• B) there are several homogeneous cost pools
• C) different activities have the same cost-allocation base
• D) different products use different resources in the same proportion

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Definitions:

Untapped Resources

Resources, often natural, that have not been used yet and hold potential value.

Manned Mission

A space exploration journey where human astronauts are sent to space, as opposed to robotic or unmanned missions.

NASA

The National Aeronautics and Space Administration, a United States government agency responsible for the nation's civilian space program and for aeronautics and aerospace research.

Premises

Statements or propositions from which conclusions are drawn in logical arguments, serving as the basis for reasoning.