The Following Data (In Thousands of Pounds) Have Been Taken

question 2

Multiple Choice

The following data (in thousands of pounds) have been taken from the accounting records of Karmint Corporation for the just completed year:

-The cost of the raw materials used in production during the year (in thousands of pounds) was:

• A)£190.
• B)£160.
• C)£140.
• D)£200.

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Definitions:

Overhead Costs

Indirect costs incurred during the production process or in the performance of services, not directly tied to a specific product or service.

Activity Cost Pools

Groupings of individual costs, typically by department or activity, used in activity-based costing to allocate costs to products or services.

Time-Driven

A method or approach that relies on time as the main factor to drive processes, activities, or costing.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate cost information.