In an activity-based costing system, what should be used to assign a department's manufacturing overhead costs to products produced in varying lot sizes?

Question

Alessandro Taylor

Business

18 April, 10:14

In an activity-based costing system, what should be used to assign a department's manufacturing overhead costs to products produced in varying lot sizes?

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Answers (1)

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Corinne Walters · Answer 1

In an activity-based costing system, "Multiple cause-and-effect relationships" should be used to assign a department's manufacturing overhead costs to products produced in varying lot sizes.

Explanation:

A relationship between cause and effect is a connection in which one event, i. e. the cause, causes another event, i. e. the effect, to happen. There can be many consequences of one source. Let's say you were conducting an experiment, for example, using regular high school students with no athletic skill. Many scholars from research methods or statistics are comfortable with the three principles for evaluating cause and effect-association, non-spuriousness and time order (or temporal precedence).