Which one of the following accounts is not used in an activity-based costing (ABC)system?
A)Materials Inventory
B)Work-in-Process Inventory
C)Finished Goods Inventory
D)Overhead Applied
E)Allocations Incurred

Question

Quizplus · Accepted Answer

In an activity-based costing system, "Allocations Incurred" is not a standard account. ABC focuses on assigning overhead costs based on activities, not on a specific account called "Allocations Incurred."

Which One of the Following Accounts Is Not Used in an Activity-Based