Allowances Are Given to Final Consumers, Business Customers, or Channel

question 273

True/False

Allowances are given to final consumers, business customers, or channel members for accepting more of something.

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service pricing.

Idle Capacity

Unused production capability or facilities that could be used to produce more goods but are not currently being utilized due to lack of demand or efficiency.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total manufacturing overhead costs by the total allocation base for the entire plant.

Activity-based Costing

A method in accounting that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.