Activity-based costing (ABC) is used most often to improve the assignment of overhead costs to products.

Question

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ABC is a costing method that identifies and assigns the costs of activities to products or services, allowing for a more accurate calculation of the true cost of a product. It is used to improve the assignment of overhead costs to products by identifying the activities that cause costs to be incurred and associating those costs with the products or services that benefit from those activities.

Activity-Based Costing (ABC) Is Used Most Often to Improve the Assignment