Asked by
Ricardo Ortiz
on Dec 01, 2024Verified
What are the activity rates for the three activities under activity-based costing?
A) (1) $2.00; (2) $3.00; (3) $3.50.
B) (1) $3.50; (2) $1.50; (3) $32,80.
C) (1) $3.50; (2) $3.00; (3) $16.00.
D) (1) $2.00; (2) $1.50; (3) $16.00.
E) (1) $2.00; (2) $1.50; (3) $32.80.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on their consumption of resources, aiming to provide more accurate product costing.
Activity Rates
Charges or rates applied based on specific activities conducted, often used in activity-based costing to allocate indirect costs.
Activity Cost Pools
Aggregations of all the costs associated with specific activities used in activity-based costing.
- Acquire knowledge about the concept and implementation of activity-based costing (ABC).
- Recognize the role of cost pools in ABC.
Verified Answer
MK
Learning Objectives
- Acquire knowledge about the concept and implementation of activity-based costing (ABC).
- Recognize the role of cost pools in ABC.