Question: In activity - based costing, an activity that has a direct cause - effect relationship with the resources consumed is a ( n ) a

In activity-based costing, an activity that has a direct cause-effect relationship with the resources consumed is a(n)
a. cost driver.
b. overhead rate.
c. cost pool.
d. product activity.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...

Q:

please help asap only have 1 hour College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall It presently applies overhead using a predetermined rate based on direct...

Q:

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company...

Q:

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company...

Q:

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor-hours. A group of company...

Q:

College Supply Company (CSC) makes three types of drinking glasses: short, medium, and tall. It presently applies overhead using a predetermined rate based on direct labor- hours. A group of company...

Q:

Jackson Ltd manufactures two products FRED and MARTHA .The firm uses a single plantwide overhead rate based on direct labour hours .Product costing data is as follows: Fred Martha Production Quantity...

Q:

Waterway Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low- cost, high-volume...

Q:

Doxy company is considering its forthcoming projections for budget purposes. Doxy's projected sales for next year and beginning and ending inventory data are as follows: Sales50,000 units Beginning...

Q:

WaterFilter Lid produces two models of water filters, the standard model and the deluxe model. Currently, the company uses conventional costing to estimate its manufacturing overhead at $80 per unit...

Q:

KWH limited operates an Activity Based Costing (ABC) system and has provided the following information. Activity Cost (ZMW) Cost Driver Number of Drivers Production set-up 105,000.00 Set-ups 300...

Q:

Find the minimum shaft diameter for the system shown below using the distortion-energy theory. Z (a) Find the minimum shaft diameter for the system shown below using the distortion-energy theory...

Q:

Assume that a student table in a university database had an index on StudentID (the primary key) and indexes on Major, Age, MaritalStatus, and HomeZipCode (all secondary keys). Further, assume that...

Q:

When misused, credit can result in: Multiple Choice a more productive life. a higher credit score. bankruptcy. a more satisfying life.

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.