Which of the following statements is true of activitybased costing?
A) It determines the direct cost per unit of production.
B) It is more complex than the direct labor method.
C) It involves a threestage process.
D) It assigns costs based on the "one size fits all" rule.

Question

Which of the following statements is true of activity­based costing?
A) It determines the direct cost per unit of production.
B) It is more complex than the direct labor method.
C) It involves a three­stage process.
D) It assigns costs based on the "one size fits all" rule.

Quizplus · Accepted Answer

Activity-based costing is a more complex method of assigning overhead costs to products. It involves identifying and analyzing the activities that contribute to overhead costs, and then assigning those costs to products based on how much of each activity is used in the production process.

Which of the Following Statements Is True of Activity­based Costing

Which of the Following Statements Is True of Activitybased Costing