$$raditional vs$.$ Activity$-$Based Costing: Activity$-$Based Costing $-$ Knowledge Check

Knowledge Check

Select the term that matches each of the following descriptions.

Any factor or activity that has a direct cause$-$effect relationship with the resources consumed.

Any event, action, transaction or work sequence that incurs costs when producing a product or performing a service.

A costing system that allocates overhead to multiple activity cost pools and assigns the activity cost pools to products or services.

The overhead attributed to a distinct type of activity or related activities.