Answer:
The correct answer is: command groups.
Explanation:
Formal groups are created by the organization and are intentionally designed to direct members towards an important objective of the organization. A type of formal group is referred to as a group of commands (that is, those that can legitimately give orders to others). Formal organization group can also be formed around a specific task. This group is known as a task group. Unlike command groups, a work group can be made up of people with some special interest or experience in a given area, regardless of their positions in the hierarchy of the organization. It consists of managers, subordinates, or both, with close relationships between group members that influence the behavior of individuals in the group.
Answer:
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Answer:
a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;
Activity rate = total overhead cost/activity for the activity cost pool.
