Activity-Based Costing First Assigns Costs to Activities,then to

question 35

Multiple Choice

Activity-based costing first assigns costs to activities,then to

• A)the products based on each product's use of activities.
• B)the plant based on each plant's use of activities.
• C)the departments based on each department's use of activities.
• D)the industry based on each industry's use of activities.

---

Definitions:

Variable Selling Expense

Costs incurred from selling a product that vary directly with the number of units sold, such as commissions and shipping costs.

Specialized Machine

Equipment designed for a specific manufacturing process or product, often custom-made and representing a significant fixed cost.

Contribution Margin

The amount of revenue remaining after deducting the variable costs, indicating the contribution towards the fixed costs and profits.

Annual Production

The total quantity of goods or output produced by a company in a year.