Which of the Following Is True of Activity-Based Costing

question 16

Multiple Choice

Which of the following is true of activity-based costing?

• A)It is also called single-plantwide overhead costing.
• B)It is helpful when companies manufacture one product.
• C)It categorizes all indirect costs by activity.
• D)The total overhead costs accumulate in one cost pool.

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Definitions:

Machine Hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting to allocate expenses.

Power Costs

Expenses related to the consumption of energy or electricity in the production or operation of a business.

Simplest Algorithm

The most basic and straightforward method for solving a problem or performing a computation.

Kilowatt Hours

A unit of energy equivalent to one kilowatt of power expended for one hour, commonly used to measure electricity consumption.