Activity-Based Budgets Compare Costs for Items Based on Activities Such

question 23

Multiple Choice

Activity-based budgets compare costs for items based on activities such as

• A)direct material.
• B)direct labor.
• C)setups.
• D)power.

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Definitions:

Activity Cost Pools

Groups of related costs that are allocated to specific activities using cost drivers in activity-based costing systems.

Product X

A placeholder name commonly used to refer to a generic or unspecified product in discussions or examples.

Activity-based Costing

An approach to assigning an organization's overhead costs to specific products or services based on the activities undertaken to produce those products or services.

Direct Labour-hours

Direct labor-hours are the total hours spent by workers who directly contribute to the manufacture of a product, a direct measure of labor input.