Uniformly assigning the costs of resources to cost objects when those resources are actually used in a non-uniform way is called
A)activity-based costing.
B)menu-based costing.
C)full product-cost allocation.
D)variable product-cost allocation.
E)broad averaging or peanut butter costing.

Question

Quizplus · Accepted Answer

Broad averaging or peanut butter costing is when costs are uniformly assigned to cost objects even though the resources are not used uniformly. This method is known to be less accurate than activity-based costing, which allocates costs based on the actual usage of resources. Therefore, option E is the correct answer.

Uniformly Assigning the Costs of Resources to Cost Objects When