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Activity-Based Costing

Question 30

Multiple Choice

Activity-based costing


A) allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
B) accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver.
C) assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools.
D) allocates overhead directly to products and services based on activity levels.

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