In his new employee orientation training, Fabian heard Meredith, his new accounting supervisor, explain, "At Williams Corporation, we do not use traditional cost accounting. Rather, we use activity-based costing, or ABC. According to ABC, we ________ costs according to what our employees do, rather than what the company spends."
A) audit
B) expend
C) trade
D) allocate
E) benchmark

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) allocates costs according to the activities that contribute to them, rather than simply allocating costs to departments or products based on the company's spending. Therefore, the best choice is "allocate."

In His New Employee Orientation Training, Fabian Heard Meredith, His