TB MC Qu. 5-26 Overhead costs are allocated to cost ...

Overhead costs are allocated to cost objects in an activity-based costing system in the following manner:

Multiple Choice

• Overhead costs are traced to departments, then costs are traced to products.

• Overhead costs are traced to activities, then costs are traced to products.

• Overhead costs are traced from resources to cost objects.

• Overhead costs are traced to activities, then costs are traced to departments and then allocated to products.