Please answer with reason for all why the option is correct and why the other options are incorrect Please answer correct otherwise skip it 3. Which of the following statements is true? An activity cost pool in activity-based costing is a "cost bucket" in which costs related to a particular activity measure are accumulated. In activity-based costing, each major activity has its own overhead cost pool, its own activity measure, and its own overhead rate. In activity-based costing, departmental overhead rates are used to apply overhead to products. Multiple Choice Statements I and II are true. Statements II and III are true. All of the statements are true. None of the statements are true.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please answer with reason for all why the option is correct and why the other options are incorrect
Please answer correct otherwise skip it
3.
Which of the following statements is true?
An activity cost pool in activity-based costing is a "cost bucket" in which costs related to a particular activity measure are accumulated.
In activity-based costing, each major activity has its own
In activity-based costing, departmental overhead rates are used to apply overhead to products.
Multiple Choice
Statements I and II are true.
Statements II and III are true.
All of the statements are true.
None of the statements are true.
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