Question: Activity-based costing allocates overhead to multiple activity cost pools, and it then assigns the activity cost pools to products and services by means of cost

Activity-based costing

allocates overhead to multiple activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.

allocates overhead directly to products and services based on activity levels.

assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools.

accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver.

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