A Two-Stage System First Allocates Costs To

question 131

Multiple Choice

A two-stage system first allocates costs to:

• A) products or services and then allocates costs to departments or activities.
• B) the cost driver and then allocates costs to the cost hierarchy.
• C) a product line and then allocates costs to the department.
• D) departments or activities and then allocates costs to products or services.

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Definitions:

SUTA Rate

The rate imposed on employers by a state to fund unemployment benefits, varying by state and the employer's claim history.

Interstate Commerce

Refers to any business or trade activity that crosses state lines, regulated by the federal government in the United States.

Federal Income Tax

A fiscal duty assessed by the federal authority on the annual revenues of people, firms, trusts, and assorted legal entities.

FICA Rate

The total percentage of Social Security and Medicare taxes that must be paid by both employees and employers under the Federal Insurance Contributions Act.