Asked by Sofia Bernal on Jul 13, 2024
Verified
When activity-based costing is used to apply overhead to products, support department costs are referred to as
A) support activity costs
B) department activity costs
C) multiple activity costs
D) activity-based department costs
Support Activity Costs
Costs associated with activities not directly involved in producing goods or services but necessary for the overall operation.
Activity-Based Costing
A method of accounting that identifies and assigns costs to overhead activities and then assigns those costs to products.
- Recognize the essentiality and processes for apportioning expenses of support departments to products.
- Comprehend key aspects and restrictions of activity-based costing (ABC) along with different techniques for overhead distribution.
Verified Answer
AH
Ameena HaleyJul 16, 2024
Final Answer :
A
Explanation :
Support department costs are referred to as support activity costs in activity-based costing because these costs are associated with activities that support the production process but are not directly tied to a specific product.
Learning Objectives
- Recognize the essentiality and processes for apportioning expenses of support departments to products.
- Comprehend key aspects and restrictions of activity-based costing (ABC) along with different techniques for overhead distribution.
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