Match the items below by choosing the appropriate code letter :
-Allocates overhead to multiple activity cost pools, then assigns the activity cost pools to products.
A)Cost driver
B)Facility-level activity
C)Unit-level activity
D)Activity-based costing
E)Batch-level activity
F)Product-level activity
G)Non-value-added activity
H)Value-added activity

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a costing method that allocates overhead to multiple activity cost pools and then assigns the activity cost pools to products or services based on their use of the activities. This method is designed to provide more accurate cost information by tracing costs more directly to the products or services that cause them.

Match the Items Below by Choosing the Appropriate Code Letter