which of the following statements is true of a peanut-butter costing system? a.

Question

which of the following statements is true of a peanut-butter costing system?

a. a peanut-butter costing system typically has more-homogeneous indirect cost pools

b. a peanut-butter costing system broadly averages or spreads the cost of resources uniformly to cost objects

c. a peanut butter costing system assumes that all costs are variable

d. in a peanut butter costing system, costs of activities are used to assign costs to other costs objects such as products or services based on the activitiese the products or services consume.

Explanation / Answer

Solution:

The answer to the above question is -

a. A peanut butter costing system has more homogeneous indirect cost pools.

As in case of peanut butter company, the products are homogeneous thus, cost pools are allocated accordingly.

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