The costing method that first assigns costs to activities and then assigns them to products based on the products' consumption of activities is called:
A) lean accounting.
B) responsibility centers.
C) activity-based costing.
D) budgeting.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a method that assigns costs to activities and then allocates those costs to products based on the products' consumption of those activities.

The Costing Method That First Assigns Costs to Activities and Then