Which of the following would most likely be treated as an activity in an activity-based costing system?
A)Direct labor cost
B)Machine processing
C)Direct materials cost
D)Sales revenues

Question

Quizplus · Accepted Answer

An activity-based costing system focuses on identifying and allocating costs based on different activities that are performed in a production process. Machine processing would be considered an activity as it involves a specific action that contributes to the production of a product. Direct labor cost and direct materials cost are types of costs that would be allocated to different activities, but they are not activities on their own. Sales revenues are not costs and would not be treated as an activity in an activity-based costing system.

Which of the Following Would Most Likely Be Treated as an Activity