Answered: ABC systems Select one a. will limit…

ABC systems Select one a. will limit cost drivers to units of output O b.comply with CAAP c highlight the different levels of activities O d will allocate costs based on volume

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 9MC: Which is not a step In activity-based costing? A. identify the activities performed by the...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

ABC systems
Select one
a. will limit cost drivers to units of output
O b.comply with CAAP
c highlight the different levels of activities
O d will allocate costs based on volume

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Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
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