An activity based costing hierarchy includes _____________?
Correct answer: D. all of aboveEconomics
- A. batch level
- B. output unit level
- C. facility and product sustaining
- D. all of aboveEconomics
Explanation
Activity-based costing commonly groups activities into unit-level, batch-level, product-sustaining, and facility-sustaining levels. Since batch, output-unit, and facility/product-sustaining levels are all included, all of the above is correct.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
In production volume variance, an acquiring fixed cost such as equipment and plant lease is known as ____________?
If the fixed setup cost is $21000 and the variable setup cost is $11000, then the setup cost would be _________?
In flexible budget analysis, the variable overhead flexible budget variance is equal to _________?
If the flexible budget amount is $21500 and fixed overhead flexible budget variance is $10000, then actual incurred cost will be _________?
In manufacturing settings, the budgeted fixed overhead rate is classified as ___________?
The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150, then budgeted fixed overhead output unit will be __________?