Palin Inc. has started a new system of allocating costs according to what their employees do, rather than what the company spends. For example, labor expenses are allocated to employee tasks rather than salary and benefits. This practice is referred to as
A) cost accounting.
B) accounting auditing.
C) task accounting.
D) activity-based costing.
E) allocation costing.

Question

Quizplus · Accepted Answer

The practice described in the question is activity-based costing, where costs are allocated to specific activities or tasks performed within a company rather than being based on overall company expenditures.

Palin Inc Has Started a New System of Allocating Costs According