Q391
For estimation of each cost pool for cost function, attention must be paid to
A.
cost object hierarchy
B.
management hierarchy
C.
price hierarchy
D.
cost hierarchy
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
For estimation of each cost pool for cost function, attention must be paid to cost hierarchy. The cost hierarchy is a classification system used in activity-based costing that designates activities based on how easily they can be traced to a product.