Author Question: Using activity-cost rates rather than department indirect-cost rates to allocate costs results in ... (Read 157 times)

fnuegbu · **on:** Jul 5, 2018

Using activity-cost rates rather than department indirect-cost rates to allocate costs results in different product costs when ________.

A) a single activity accounts for a sizable portion of department costs
B) there are several homogeneous cost pools
C) different activities have the same cost-allocation base
D) different products use different resources in the same proportion

Question 2

Kate made a 475 payment on her company van. She should credit Accounts Payable and debit the automobile account.
a. True
b. False
Indicate whether the statement is true or false