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:

System of Equations

A set of two or more equations with the same variables, intended to be solved together.

Graph Equations

The process of plotting points or drawing curves on a coordinate plane to represent solutions of equations.

Graph Equations

The process of plotting solutions to an equation on a coordinate plane to visualize the relationship between variables.

System of Equations

A set of two or more equations with the same variables, where the solution is the set of values that satisfy all equations simultaneously.