Overhead Costs Are Allocated to Cost Objects in an Activity-Based

Multiple Choice

Overhead costs are allocated to cost objects in an activity-based costing system in the following manner:

A) Overhead costs are traced to departments, then costs are traced to products.
B) Overhead costs are traced to activities, then costs are traced to products.
C) Overhead costs are traced to activities, then costs are traced to departments and then allocated to products.
D) Overhead costs are traced from resources to cost objects.
E) None of the above.