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Ricardo Ortiz
on Dec 01, 2024

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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.
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Mathebula KulaniDec 06, 2024
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