Question

Which of the following are a type of overhead allocation method? (Check all that apply).

A) Activity-based costing
B) Absorption costing
C) Variable costing
D) Standard costing

Answer 1

Activity-based costing, absorption costing, and variable costing are types of overhead allocation methods used in cost accounting.

Step-by-step explanation:

The overhead allocation methods used in cost accounting involve assigning or allocating overhead costs to different products or services. Based on the given options, the types of overhead allocation methods are:

• A) Activity-based costing: This method assigns overhead costs based on the activities that consume resources.
• B) Absorption costing: This method assigns overhead costs to products based on a predetermined rate per unit of production.
• C) Variable costing: This method only considers variable manufacturing costs and excludes fixed overhead costs.

Therefore, the correct options are A) Activity-based costing, B) Absorption costing, and C) Variable costing.