Which of the Following Is the Secondstep in Activity Based

question 126

Multiple Choice

Which of the following is the secondstep in activity based costing?

• A)Identify the activities that consume resources and assign costs to those activities.
• B)Identify the cost drivers associated with each activity.
• C)Compute a cost rate per cost driver unit.
• D)Assign cost to products by multiplying the cost driver rate times the volume of cost driver consumed by the product.

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Definitions:

Top-down Communication

A method of information flow where decisions and information are passed from higher levels of an organization to lower levels.

Egalitarian Climate

A work environment where all employees are given equal respect and opportunities, regardless of their status or job role.

Departments Expand

The process of a company or organization increasing the size, scope, or number of its divisions.

Specialized

Pertains to a specific area of expertise or focus within a larger field.