From a purely ________ standpoint,department rates and activity-cost-driver rates will give the same product costs if significant costs are incurred for different activities within a department but different outputs use resources from the different activities in the same proportions.
A)financial accounting
B)decision making
C)product-costing
D)management accounting

Question

Quizplus · Accepted Answer

The question is related to the concept of product costing. From a product-costing standpoint, department rates and activity-cost-driver rates will give the same product costs if significant costs are incurred for different activities within a department but different outputs use resources from the different activities in the same proportions. Therefore, the best choice is C, product-costing. Financial accounting is concerned with the preparation of financial statements, decision-making involves making choices among alternative courses of action, and management accounting includes the process of identifying, measuring, analyzing, and communicating financial information. These concepts are not directly related to the given scenario.

From a Purely ________ Standpoint,department Rates and Activity-Cost-Driver Rates Will