Multiple cost pools and cost objects is a feature of :
A) Traditional costing systems
B) Direct allocation costing systems
C) Activity based costing
D) a and b

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is known for using multiple cost pools and assigning costs to objects based on activities. This method allows for more accurate allocation of overhead costs compared to traditional costing systems, which often use a single, volume-based cost driver.

Multiple Cost Pools and Cost Objects Is a Feature of