The hierarchy which is based on different types of cost allocation and drivers, to categorize cost pool activity is classified as __________?
Correct answer: A. cost hierarchy
- A. cost hierarchy
- B. price hierarchy
- C. activity hierarchy
- D. purpose hierarchy
Explanation
A cost hierarchy groups activities according to the level at which their costs are incurred, such as unit-level, batch-level, product-sustaining and facility-sustaining activities. The allocation driver normally differs across these hierarchy levels.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
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
The costs of undertaken activities is to support individual products and are known as __________?
In the activity based costing method implementation, an output unit level costs are classified as ____________?
The costs of all the activities for individual products or services can be called ___________?
The type of costs that cannot be traced for individual products but help in supporting an organization are classified as ___________?
The cost pool category, which have the similar cause and effect relationship, with each cost driver uses as an allocation base is classified as __________?
The costs of all the activities for a group of products, rather than individual product can be classified as ___________?