is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity.
A) Transaction- based accounting
B) Transaction costing
C) Cost- driver accounting
D) Activity- based costing

Question

Quizplus · Accepted Answer

Activity-based costing is a system that allocates overhead costs to specific activities and then assigns those costs to products or services based on their usage of those activities.

Is a Name for a System That First Accumulates Overhead