Activity-based costing is a detailed approach to determining the cost of goods and services.

Question

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Activity-based costing is a detailed approach that focuses on identifying and assigning the costs of all activities involved in producing a product or providing a service. It provides a more accurate picture of the true cost of a product or service by tracing overhead and indirect costs to specific activities, and then to products or services based on their actual use of those activities.

Activity-Based Costing Is a Detailed Approach to Determining the Cost