QUESTION 8 Incorrect 0.00 points out of 4.00 lag question Which of he olowing st

Question

QUESTION 8 Incorrect 0.00 points out of 4.00 lag question Which of he olowing statemenis most accuradelees Ahy-Based Coing? Select one: O A. Costs are accumulated in departments and allocated based on a single driver for each department. O B. Costs are accumulated in departments and allocated based a variety of drivers for each O C. Costs are accumulated in cost pools and allocated based on a single driver for each O D. Costs are accumulated in cost pools and allocated based on a variety of drivers for each O E. None of the above department pool pool. x

Explanation / Answer

The right answer is option (b) costs are accumulated in department and allocated based on a variety of drivers for each department.

justification: each depart will have different drivers like number of setups, number of production runs, number of orders etc. Costs accumulated in each department will be allocated based on above drivers. Therefore the right answer is option(b)

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