In his new employee orientation training, Francisco heard Meibeth, his new accounting supervisor, explain, "At Wrightfield 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 drive them, rather than traditional cost accounting, which allocates costs according to what the company spends. Therefore, the most appropriate term in the sentence would be "allocate."

In His New Employee Orientation Training, Francisco Heard Meibeth, His