If a Firm Uses Activity-Based Costing to Allocate Costs, It

question 5

Multiple Choice

If a firm uses activity-based costing to allocate costs, it must:

• A) Combine costs in appropriate pools.
• B) Select appropriate cost drivers.
• C) Calculate an appropriate rate for each pool.
• D) Allocate costs based on predetermined rates for cost pools.
• E) Perform all of these steps.

---

Definitions:

Hypertension

A condition characterized by consistently elevated blood pressure above the normal range.

Blood Pressure

A measure of the force of blood pushing against the walls of the arteries as the heart pumps blood.

Bradycardia

A slower than normal heart rate, typically defined as a resting heart rate of under 60 beats per minute in adults.

Systole

The phase of the heartbeat during which the heart muscle contracts and pumps blood from the chambers into the arteries.