When using activity-based costing in a manufacturing setting, its distinctive feature is the focus on
A)activities as the fundamental cost objects.
B)minimizing the number of journal entries related to the manufacturing process.
C)minimizing manufacturing costs.
D)materials handling.
E)materials sorting.

Question

Quizplus · Accepted Answer

Activity-based costing focuses on activities as the primary cost object, rather than just the products being produced. This allows for a more accurate allocation of indirect costs to specific products based on the activities that are required to produce them. The other answer choices are not specific features of activity-based costing.

When Using Activity-Based Costing in a Manufacturing Setting, Its Distinctive