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    Management Accounting Study Set 1
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    Exam 5: Cost Allocation and Activity-Based Costing Systems
  5. Question
    A System That First Accumulates Overhead Costs for Each of the Activities
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A System That First Accumulates Overhead Costs for Each of the Activities

Question 115

Question 115

Short Answer

A system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity.

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