Activity based costing is a way of treating overhead costs more like direct costs.

Name: Activity based costing is a way of treating overhead costs more like direct costs.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Activity based costing involves assigning overhead costs to specific activities or processes, rather than allocating them based on a predetermined rate or percentage. This allows for a more accurate and precise allocation of overhead costs to products or services, and therefore treats these costs more like direct costs.

Activity Based Costing Is a Way of Treating Overhead Costs