Firms that use activity-based costing shift costs classified from overhead to direct costs.

Name: Firms that use activity-based costing shift costs classified from overhead to direct costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity-based costing allocates overhead costs to specific activities, which are then assigned to specific products or services. This results in more accurate and precise product costing, with overhead costs being shifted from general overhead to direct costs.

Firms That Use Activity-Based Costing Shift Costs Classified from Overhead