Which of the Following Statements Accurately Describes the Basis of Activity-Based

question 28

Multiple Choice

Which of the following statements accurately describes the basis of activity-based costing?

• A) Activities simply sustain a facility's general manufacturing process.
• B) Activities refer to batch-level costs incurred to support the production of each different type of product.
• C) Activities consume facility-level costs.
• D) Activities consume resources and products consume activities.

---

Definitions:

Encyclopedias

Comprehensive reference works that provide summaries on a wide range of subjects or on numerous aspects of a particular field.

Almanacs

Annual publications providing a wide array of information including weather forecasts, farmers' planting dates, and various statistics and articles.

Physicians

Medical professionals who diagnose and treat illnesses, prescribe medications, and provide health advice and care to patients.

Procedures

Established ways of doing something, typically following a sequence of steps or a set protocol.