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Activity-based costing

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Reference no: EM131300441

1. Activity-based costing

A) accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver.

B) assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools.

C) allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.

D) allocates overhead directly to products and services based on activity levels.

2. Activity-based costing

A) is a two-stage overhead cost allocation system that identifies activity cost pools and cost drivers.

B) uses direct labor as its primary cost driver.

C) is the initial phase of converting to a just-in-time operating environment.

D) can be used only in a job order costing system.

Reference no: EM131300441

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