In ____,activities associated with overhead cost generation are identified and then records are kept on the costs and on the activities.
A)activity-based costing
B)backoffice costing
C)run of the mill costing
D)plant operation costing

Question

Quizplus · Accepted Answer

Activity-based costing is a costing method that identifies and traces the activities associated with overhead cost generation. It involves assigning indirect costs to products or services based on the specific activities that contribute to the costs. This method provides a more accurate picture of the true costs of products or services compared to traditional methods that allocate overhead costs based on a single cost driver.

In ____,Activities Associated with Overhead Cost Generation Are Identified and Then