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

Question

Quizplus · Accepted Answer

Resource spending refers to the cost of acquiring activity capacity, including the purchase or lease of equipment, supplies, and labor. Joint costs refer to the cost incurred in the production of two or more products simultaneously, absorption costing is a method of accounting for production costs, and variable costing is a method of inventory valuation. None of these options accurately describe the cost of acquiring activity capacity.

_____ Is(are) the Cost of Acquiring Activity Capacity