Which of the following statements is true regarding activities?
A) An activity that drives overhead costs should only take place within the physical manufacturing facility.
B) Activities can be consumed by resources.
C) Overhead costs can be traced to more than one activity.
D) Activities seldom cause work to be accomplished.

Question

Quizplus · Accepted Answer

Overhead costs often relate to multiple activities within a business process. This is a fundamental concept in activity-based costing, where costs are allocated based on the activities that consume resources, recognizing that a single overhead cost can be driven by several different activities.

Which of the Following Statements Is True Regarding Activities