Which of the following activities would incur costs that could be tracked and allocated using Activity-Based Costing?

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) is a method that assigns costs to products and services based on the activities they require. This includes indirect costs such as machine set-ups, customer billing processes, payroll preparation, and equipment maintenance and routine cleaning. Each of these activities consumes resources and can be directly associated with specific cost objects, making them suitable for tracking and allocation using ABC.

Which of the Following Activities Would Incur Costs That Could