When "available time" (i.e., setup-hours) is used to calculate a cost of a resource and to allocate costs to cost objects , the system is called:
A) job costing
B) process costing
C) hybrid costing
D) time-driven activity based costing

Question

Quizplus · Accepted Answer

Time-driven activity based costing uses available time (e.g., setup-hours) to calculate the cost of a resource and allocate that cost to cost objects. This system is useful for finding the true cost of individual activities within a process and provides more accurate cost information for decision-making purposes. Job costing and process costing do not rely solely on available time to calculate costs, and hybrid costing is not a commonly used system in practice.

When "Available Time" (I