The cost of acquiring activity capacity is(are)
A)Joint costs
B)Variable costing
C)Absorption costing
D)Resource spending

Question

Quizplus · Accepted Answer

The cost of acquiring activity capacity is a type of resource spending, as it involves the investment in resources, such as machinery or equipment, to increase activity capacity. Joint costs are costs incurred in producing multiple products simultaneously, while variable costing and absorption costing are both methods of assigning costs to products based on different criteria. However, neither of these methods specifically relates to the cost of acquiring activity capacity.

The Cost of Acquiring Activity Capacity Is(are)