The Activity Rates in Activity-Based Costing Are Not Intended to Set

question 129

True/False

The activity rates in activity-based costing are not intended to set targets for how quickly a task should be completed.

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Definitions:

Direct Labour Hours

The total hours worked by employees that can be directly associated with the production of goods or services.

Finished Goods

Manufactured items that are completed and ready for sale but have not yet been sold to customers.

Raw Materials

Primary components or substances used in the production of goods.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant component of finished goods.