{"id":52897,"date":"2024-04-15T23:46:03","date_gmt":"2024-04-15T23:46:03","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=52897"},"modified":"2024-04-15T23:46:03","modified_gmt":"2024-04-15T23:46:03","slug":"hierarchy-which-is-based-on-different-types-of-cost-allocation-and-drivers-is-to-categorize-cost-pool-activity-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/hierarchy-which-is-based-on-different-types-of-cost-allocation-and-drivers-is-to-categorize-cost-pool-activity-is-classified-as\/","title":{"rendered":"Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;cost hierarchy&#8221; option2=&#8221;price hierarchy&#8221; option3=&#8221;activity hierarchy&#8221; option4=&#8221;purpose hierarchy&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. cost hierarchy<\/strong>.<\/p>\n<p>A cost hierarchy is a classification of costs based on the different types of cost allocation and drivers. It is used to categorize cost pool activity. The four main types of cost allocation are direct, indirect, variable, and fixed. The four main types of cost drivers are volume, batch, product, and customer.<\/p>\n<p>A cost hierarchy is important because it allows businesses to allocate costs more accurately. This can lead to more accurate financial reporting and better decision-making.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li><strong>A. cost hierarchy<\/strong> is a classification of costs based on the different types of cost allocation and drivers. It is used to categorize cost pool activity.<\/li>\n<li><strong>B. price hierarchy<\/strong> is a classification of prices based on the different types of products or services. It is used to categorize price changes.<\/li>\n<li><strong>C. activity hierarchy<\/strong> is a classification of activities based on the different types of costs or revenues. It is used to categorize activity costs.<\/li>\n<li><strong>D. purpose hierarchy<\/strong> is a classification of purposes based on the different types of goals or objectives. It is used to categorize purpose costs.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;cost hierarchy&#8221; option2=&#8221;price hierarchy&#8221; option3=&#8221;activity hierarchy&#8221; option4=&#8221;purpose hierarchy&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-52897","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/hierarchy-which-is-based-on-different-types-of-cost-allocation-and-drivers-is-to-categorize-cost-pool-activity-is-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hierarchy which is based on different types of cost allocation and drivers, is to categorize cost pool activity is classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;cost hierarchy&#8221; 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