When activity-based costing is used to apply overhead to products, support department costs are referred to as
A)support activity costs
B)department activity costs
C)multiple activity costs
D)activity-based department costs

Question

Quizplus · Accepted Answer

Support department costs are referred to as support activity costs in activity-based costing because these costs are associated with activities that support the production process but are not directly tied to a specific product.

When Activity-Based Costing Is Used to Apply Overhead to Products