In an activity-based costing system, a bill of activities will include:
A) a charge for allocated overhead.
B) the activity cost per unit of activity driver.
C) the quantity of activity consumed.
D) the activity cost per unit of activity driver AND the quantity of activity consumed.

Question

Quizplus · Accepted Answer

In an activity-based costing system, a bill of activities will include both the activity cost per unit of activity driver and the quantity of activity consumed. This information is necessary to accurately allocate overhead to products or services based on the activities they require.

In an Activity-Based Costing System, a Bill of Activities Will