A costing technique that assigns costs to cost objects such as products or customers,based on the activities those cost objects require is referred to as
A)Activity-job costing.
B)Activity-based costing.
C)Activity-pool costing.
D)None of these ans choices are correct..

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) assigns costs to cost objects based on the activities needed to produce or serve them. This method is more accurate and detailed than traditional costing methods, as it takes into account the various activities that a cost object requires, instead of just allocating costs based on direct labor or machine hours. ABC allows for better cost management, decision-making, and pricing strategies.

A Costing Technique That Assigns Costs to Cost Objects Such