A costing technique that assigns costs to cost objects such as products or customers, based on the activities those cost objects require is referred to as
A)activity-job costing.
B)activity-based costing.
C)activity-pool costing.
D)activity-trace costing.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a costing technique that assigns costs to cost objects such as products or customers, based on the activities those cost objects require. It is a more accurate and comprehensive method of costing than traditional costing methods as it takes into account the various activities involved in the production or delivery of the product or service. ABC can help identify the true cost of products or services and can aid in decision-making regarding pricing, product mix, and resource allocation.

A Costing Technique That Assigns Costs to Cost Objects Such