Activity-based costing systems focus on accumulating costs into key activities instead of departments.

Question

Quizplus · Accepted Answer

Activity-based costing systems aim to identify and assign costs to specific activities that contribute to the production of a product or service, regardless of the department in which they occur. This method provides a more accurate and detailed understanding of the costs associated with each activity, allowing for better decision-making and cost management.

Activity-Based Costing Systems Focus on Accumulating Costs into Key Activities