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:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for physical activity by increasing heart rate, dilating airways, and mobilizing energy stores, among other functions.

Parasympathetic Nervous System

The division of the autonomic nervous system that conserves energy and restores the body to a state of calm.

Fight-Or-Flight

A physiological response to perceived threats, preparing the body to fight or flee.

Rest And Digest

Describes the activity of the parasympathetic nervous system, promoting a state of calm and supporting digestive and recuperative processes.