In activity-based costing systems,budgeted overhead rates for indirect costs are determined.Which department(s)prepare budgeted overhead rates?
A)production only
B)production and distribution only
C)all value chain functions
D)production and customer service only

Question

Quizplus · Accepted Answer

In activity-based costing systems, budgeted overhead rates are determined by all value chain functions, not just specific departments like production or distribution. This is because indirect costs are often incurred throughout the entire value chain, and the usage of resources can impact multiple functions. Therefore, it is important for all departments to work together to determine the most accurate budgeted overhead rates.

In Activity-Based Costing Systems,budgeted Overhead Rates for Indirect Costs Are