The Traditional Approach to Cost Allocation Focuses on Accumulating and Reporting

question 6

Multiple Choice

The traditional approach to cost allocation focuses on accumulating and reporting costs by ________.The activity-based approach to cost allocation focuses on accumulating and reporting costs by ________.

• A) cost behavior; resources used
• B) departments; activities
• C) fixed costs; variable costs
• D) product; customer

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Definitions:

Collectively Consumed

Products or services that are used or consumed by a group of people simultaneously, such as public goods.

Exclude

To deliberately leave something or someone out of a group, list, or conversation.

Private Sector

The sector of the economy operated by private individuals and businesses aiming for profit, without direct governmental management.

Excluded

Not included, left out, or omitted from a group, list, or category.