The Costing Method That First Assigns Costs to Activities and Then

question 10

Multiple Choice

The costing method that first assigns costs to activities and then assigns them to products based on the products' consumption of activities is called:

• A) lean accounting.
• B) responsibility centers.
• C) activity-based costing.
• D) budgeting.

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Definitions:

Revenue Function

A Revenue Function is a mathematical representation of how a company's revenue is dependent on the selling price and quantity of goods or services sold.

Supply Curves

Graphs showing the relationship between the price of a good and the quantity of that good a seller is willing to supply.

Demand Curves

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Market Equilibrium

Market equilibrium is the condition in which the quantity supplied of a good matches the quantity demanded at a particular price, leading to a stable market condition.