Asked by Joshua Davis on Jun 07, 2024
Verified
In an activity-based costing system, a bill of activities will include:
A) a charge for allocated overhead.
B) the activity cost per unit of activity driver.
C) the quantity of activity consumed.
D) the activity cost per unit of activity driver AND the quantity of activity consumed.
Bill Of Activities
A detailed list of all the actions or activities that are required to complete a project or produce a product.
Activity Driver
An activity driver is a factor that influences the performance or cost of activities within a business, helping to accurately allocate costs based on actual consumption or usage.
- Comprehend the distribution of expenses in basic activity-based product costing systems as opposed to conventional systems.
Verified Answer
-B
-Suzilawati binti Uyob (UC)Jun 10, 2024
Final Answer :
D
Explanation :
In an activity-based costing system, a bill of activities will include both the activity cost per unit of activity driver and the quantity of activity consumed. This information is necessary to accurately allocate overhead to products or services based on the activities they require.
Learning Objectives
- Comprehend the distribution of expenses in basic activity-based product costing systems as opposed to conventional systems.
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