In General,the Unit-Level Costs in an Activity-Based Costing (ABC)system Are

question 3

True/False

In general,the unit-level costs in an activity-based costing (ABC)system are variable costs.

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Definitions:

Direct Materials

Basic substances that can be directly linked to the production process of a good.

Direct Labor

Labor costs that can be directly traced to the production of specific goods or services, such as wages for assembly line workers.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Manufacturing Overhead

All indirect manufacturing costs, including indirect labor, materials, and other expenses not directly tied to the production of goods.