Accounting 231 Exam 2 WSU Question
and answers 100% correct 2025/2026
Plantwide Overhead Rate - correct answer ✔A single overhead rate that is used throughout an entire
factory.
Departmental Overhead Rate - correct answer ✔Many companies use this system in which each
department has its own overhead rate designated on what is similar.
Activity-Based Costing - correct answer ✔Assigns overhead costs more accurately to products. Uses
multiple allocation bases for assigning costs. Each base represents a major activity. Activity is an event
that causes consumption of OH resources.
ABC process - correct answer ✔Cost objects, Activities, Consumption of resources, consumption of
resources incur cost.
Activity` - correct answer ✔Event that causes the consumption of overhead resources.
Activity Cost Pool - correct answer ✔A "cost bucket" in which costs related to a particular activity are
accumulated.
Activity Measure - correct answer ✔Expresses how much of the activity is carried out and is used as the
allocation base for applying overhead costs.
Activity Rate - correct answer ✔A predetermined overhead rate for each activity cost pool.
Predetermined Overhead Rate - correct answer ✔A rate computed for each activity and then applied
to jobs and products based on the amount of activity consumed by the job or product.
and answers 100% correct 2025/2026
Plantwide Overhead Rate - correct answer ✔A single overhead rate that is used throughout an entire
factory.
Departmental Overhead Rate - correct answer ✔Many companies use this system in which each
department has its own overhead rate designated on what is similar.
Activity-Based Costing - correct answer ✔Assigns overhead costs more accurately to products. Uses
multiple allocation bases for assigning costs. Each base represents a major activity. Activity is an event
that causes consumption of OH resources.
ABC process - correct answer ✔Cost objects, Activities, Consumption of resources, consumption of
resources incur cost.
Activity` - correct answer ✔Event that causes the consumption of overhead resources.
Activity Cost Pool - correct answer ✔A "cost bucket" in which costs related to a particular activity are
accumulated.
Activity Measure - correct answer ✔Expresses how much of the activity is carried out and is used as the
allocation base for applying overhead costs.
Activity Rate - correct answer ✔A predetermined overhead rate for each activity cost pool.
Predetermined Overhead Rate - correct answer ✔A rate computed for each activity and then applied
to jobs and products based on the amount of activity consumed by the job or product.
