Which One of the Following Accounts Is Not Used in an Activity-Based

question 109

Multiple Choice

Which one of the following accounts is not used in an activity-based costing (ABC) system?

• A) Materials Inventory.
• B) Work-in-Process Inventory.
• C) Finished Goods Inventory.
• D) Allocations IncurreD.
• Allocations Incurred is not an account.ABC uses the same accounts that a traditional cost has,the overhead accounts are classified by activity.

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Definitions:

Mail Delivery

The system of transporting and distributing letters and packages from senders to recipients.

Processing Time

The amount of time taken to complete a particular process, task, or operation.

Same Day Value

Bank makes proceeds of cheques deposited available the same day before cheques clear.

Cheques Deposited

The process of placing cheques received into a bank account to be processed and the funds credited to the account holder.