Homework Answers
Answer: d. Activity based Costing
Explanation:
ABC System uses both the Volume based and non Volume based cost drivers.Volume based cost drivers are used while producing units where as the non volume based cost drivers are used while providing services. Based on the cost pool the appropriate cost driver is applieed. Therefore the Activity based Costing application method considers non volume related activities that creates overhead costs as well as volume related activities.
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the
overhead application method that considers non volume related
activities
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