Using a broad average to allocate costs to products is called
A)activity-based costing.
B)refined costing.
C)peanut butter costing.
D)product undercoating.
E)job costing.

Question

Quizplus · Accepted Answer

Peanut butter costing refers to the practice of spreading costs evenly across products, similar to spreading peanut butter on bread, which can lead to inaccurate cost allocations.

Using a Broad Average to Allocate Costs to Products Is