Which of the Following Is Not a Step in Activity

question 54

Multiple Choice

Which of the following is not a step in activity based costing?

• A)Identify the departments that consume resources and assign costs to those departments.
• 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:

Market Share

The percentage of total sales volume in a market captured by a brand or company, serving as an indicator of competitiveness and market presence.

Return On Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the profit gained from an investment by the cost of the investment.

Experience Curve

A concept that suggests that as a company gains experience in producing a product or service, its unit production costs decrease due to learning and efficiencies.

Cumulative Output

The total amount of product or work produced over a specific period.