Abraham Company Uses Activity-Based Costing

question 131

Multiple Choice

Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 1,000 units. There are three activity cost pools, with total costs and activity as follows:
-The cost per unit of Product B is closest to:

• A)$32.71
• B)$60.12
• C)$22.95
• D)$62.73

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Definitions:

Physiological Needs

The basic, essential human requirements for survival, such as food, water, shelter, and sleep, as outlined in Maslow's hierarchy of needs.

Abraham Maslow

Abraham Maslow was a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology proposing five tiers of human needs, from basic survival needs like food and shelter to higher levels of needs such as self-actualization.

Hierarchy

Hierarchy is a system of organizing people or things according to levels of importance or authority.

Basic Amenities

Essential facilities and services provided to make a living or working environment comfortable and functional, such as clean water, electricity, and sanitation.