Activity-based costing is a technique to assign product costs based on links between activities that drive costs and the production of specific products.

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Activity-based costing (ABC) is a technique used to assign product costs based on links between activities that drive costs and the production of specific products. It is a more accurate and detailed approach than traditional costing methods that allocate costs based on arbitrary factors such as direct labor or machine hours.

Activity-Based Costing Is a Technique to Assign Product Costs Based