The Second Step in Activity-Based Costing (ABC)is to Identify the Cost

question 65

Multiple Choice

The second step in Activity-based costing (ABC) is to identify the cost driver(s) associated with each activity.Cost drivers usually relate to

• A)volume of production.
• B)hours used in production.
• C)marketing process.
• D)All of the answers are correct.

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Definitions:

Tibialis Posterior

The tibialis posterior is a muscle in the lower leg involved in stabilizing the ankle and supporting the arch of the foot during movement.

Peroneus Longus

The Peroneus Longus is a muscle on the outer side of the lower leg, which helps in plantar flexion and eversion of the foot.

Supinator

A muscle in the forearm that assists in rotating the forearm and hand so that the palm faces upwards or forwards.

Pronator Quadratus

A square-shaped muscle in the forearm that acts to pronate the wrist, turning the hand so the palm faces downwards.