Asked by
Paxton Rech (Student)
on Nov 17, 2024
Verified
When activity-based costing is used, the number of activities will generally be the same as the number of production departments.
Activity-Based Costing
A method in managerial accounting that assigns costs to products or services based on the activities that go into producing them.
Production Departments
Specific areas or divisions within a manufacturing facility where the actual production or assembly of products takes place.
- Comprehend the basic principles of activity-based costing and the method of calculating activity rates.
Verified Answer
AC
Learning Objectives
- Comprehend the basic principles of activity-based costing and the method of calculating activity rates.
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