A System of Assigning Costs to Departments and Products on the Basis

question 65

Multiple Choice

A system of assigning costs to departments and products on the basis of a variety of activities instead of only one allocation base is called:

• A) A responsibility accounting system.
• B) A cost center accounting system.
• C) Controllable costing.
• D) Activity-based costing.
• E) Performance costing.

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Definitions:

Monsoon

Refers to winds that reverse directions depending on the season.

Land Breeze

A local wind that blows from the land to the sea due to higher- pressure air over the land.

Offshore Breeze

A wind that blows from the land towards the sea, typically during the day due to temperature differences.

Low Pressure

An area where the atmospheric pressure is lower than that of the surrounding regions, often leading to poor weather conditions.