Activity-Based Costing (ABC) Is a Costing Technique That Uses a Two-Stage

question 6

Multiple Choice

Activity-based costing (ABC) is a costing technique that uses a two-stage allocation process. Which of the following statements best describes these two stages?

• A) The costs are assigned to activities, and then to the products based upon their use of the activities.
• B) The costs are assigned to departments, and then to the products based upon their use of activity resources.
• C) Service department costs are allocated to the production departments, and then to the products based upon their use of the activities.
• D) Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.

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Definitions:

Nectaries

Glandular structures in flowers or leaves that secrete nectar, attracting pollinating animals or insects.

Germination

The process by which a plant grows from a seed, involving the emergence of a seedling after a period of dormancy.

Internal and Environmental Factors

Variables or influences from within an organism and its external environment that affect its behavior, development, or survival.

Coevolved

A process where two or more species influence each other's evolutionary trajectory, leading to mutual adaptations over time.