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Homework answers / question archive / Product cost is determined in a simple activity-based in which of the following way? Select one: a
Product cost is determined in a simple activity-based in which of the following way?
Select one:
a. direct material, direct labour, manufacturing overhead and non-manufacturing overhead are assigned to products on an activity basis
b. direct material is traced using a conventional approach, while direct labour, manufacturing overhead and non-manufacturing overhead are assigned to products on an activity basis
c. None of the other answers are correct
d. direct material, direct labour and manufacturing overhead are traced using a conventional approach, and non-manufacturing overhead is assigned on an activity basis
e. none of the above are true
In ABC system, cost are assigned on activity basis so cost drivers are find for every activity. So, The correct option is A "direct material, direct labour, manufacturing overhead and non-manufacturing overhead are assigned to products on an activity basis".
