The Costing Process That (1)measures Each Service Department's Resource Spending

question 23

Multiple Choice

The costing process that (1) measures each service department's resource spending by unit,batch,product,customer,or facility,then (2) identifies and measures the activities demanded by other departments that require support-service spending,then (3) identifies appropriate cost-driver bases and calculates cost-driver rates,and finally allocates service department costs based on other departments' usage of cost-driver bases,is called the

• A)usage method.
• B)activity-based method.
• C)step method.
• D)cost driver method.

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