How Much Cost, in Total, Should NOT Be Allocated to Orders

question 18

Multiple Choice

How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

• A)$60,000
• B)$0
• C)$84,000
• D)$120,000

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Definitions:

Pay Bills Form

A document or online interface through which individuals or businesses submit payment for outstanding invoices.

Expense Form

A document used by employees to report out-of-pocket expenses for which they request reimbursement.

Check Form

A document used to authorize a bank to pay a specified sum of money from the account holder's account to a named individual or entity.

Accounts Payable

This refers to the amounts due by a business to its suppliers or other parties for goods and services received but not yet paid for.