The Activity-Based Costing full costing approach says:
A) Only costs that are clearly and certainly driven by specific units should be assigned to these units
B) Higher-level resources, such as product-level activities should not be assigned to units
C) The firm has costs because it produces units; therefore all costs related to the production and sale of the . units should be assigned to units
D) Only unit-level and batch-level costs should be assigned to units

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) posits that all costs incurred in the production and sale of units are a result of the firm's activities to produce and sell those units. Therefore, according to ABC, these costs should be assigned to the units.

The Activity-Based Costing Full Costing Approach Says