Question

1. Which of the following procedures best describes activity-based costing?

Select one:

A. All overhead costs are recorded as expenses as incurred.

B. Overhead costs are assigned to departments; then costs are assigned to products.

C. Overhead costs are assigned directly to products.

D. Overhead costs are assigned to activities; then costs are assigned to products.

2. Which of the following product costing methods produces the most precise product costing information?

Select one:

A. Activity-based costing

B. Departmental overhead rate methods

C. Organization-based costing

D. Plantwide overhead rates

Answer 1