alleryStart learning →In ABC, what is formed by the overhead costs assigned to one activity?
AActivity cost pool
BPrime cost total
CCost centre budget
DStandard cost sheet
Answer & Solution
Correct answer: A. Activity cost pool
The overhead costs gathered against a single activity make up an activity cost pool.
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Related questions
In the CIMA description of ABC, activities are assigned to what?In which journal did Cooper and Kaplan publish ABC articles from 1988?Drucker said ABC also records the cost of what?What limits the use of ABC, especially in services?What is a danger of ABC, like other cost allocation approaches?The chief executive's salary stays unassigned in ABC. What are such costs termed?Why did indirect costs rise relative to direct costs in modern factories?How does ABC assign costs, rather than using broad arbitrary percentages?