The cost object(s) of the activity-based costing method is(are):
A) The unit of product.
B) The production departments of the company.
C) The production activities of the company.
D) The production activities in the first stage and the unit of product in the second stage.
E) The unit of product in the first stage and the production activities in the second stage.

Question

Quizplus · Accepted Answer

Activity-based costing first assigns costs to production activities and then to the unit of product, making production activities the cost objects in the first stage and the unit of product in the second stage.

The Cost Object(s) of the Activity-Based Costing Method Is(are)