Asked by Queen Jenni on Jun 19, 2024
Verified
The activity rates in activity-based costing are used to determine how quickly a particular task should be done.
Activity Rates
Charges or fees based on predetermined activities used in costing systems to allocate indirect costs to products.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate product cost.
- Understand the basic concept and purpose of activity-based costing.
Verified Answer
KN
Katie NguyenJun 22, 2024
Final Answer :
False
Explanation :
The activity rates in activity-based costing are used to assign costs to products or services based on the specific activities that are required to produce them, not to determine how quickly a task should be done.
Learning Objectives
- Understand the basic concept and purpose of activity-based costing.