In an activity based costing system, overheads are allocated to products on the basis of activities consumed by each product.

Name: In an activity based costing system, overheads are allocated to products on the basis of activities consumed by each product.
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Quizplus · Accepted Answer

Activity-based costing (ABC) allocates overhead costs to products based on the specific activities required to produce each product, reflecting the actual consumption of resources.

In an Activity Based Costing System, Overheads Are Allocated to Products