ABC is used to allocate selling and administrative expenses to each product based on the product's individual differences in consuming these activities.

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Activity-Based Costing (ABC) is a method that assigns costs to products based on the resources they consume. This includes not only direct costs but also indirect costs such as selling and administrative expenses, which are allocated based on the extent to which each product uses these activities.

ABC Is Used to Allocate Selling and Administrative Expenses to Each