-Refer to the above figure. Suppose the demand curve shifts from DA to DB, while the supply curve remains at SA. Which of the following statements is FALSE?
Definitions:
Activity-Based Costing
A costing methodology that assigns costs to products or services based on the resources they consume, focusing on activities as the fundamental cost drivers.
Activity Rates
Rates used in activity-based costing to allocate overhead costs to products or services based on their consumption of activities.
Activity Cost Pools
Accumulation of overhead costs intended to be allocated to various activities based on their cost drivers.
Plantwide Overhead Rate
A single overhead absorption rate used throughout a manufacturing plant, applied to all jobs or products regardless of the department in which they were produced.
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