In activity-based costing,overhead costs are assigned to products based on the manufacturing activities that gave rise to the costs.

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Activity-based costing is a cost accounting method that assigns overhead costs to products based on the activities that were required to produce them. It is an alternative to traditional costing methods that allocate overhead costs based on direct labor or machine hours. By using activity-based costing, companies can have a more accurate understanding of the actual costs of producing products and can make better decisions regarding pricing, product mix, and resource allocation.

In Activity-Based Costing,overhead Costs Are Assigned to Products Based on the Manufacturing