Under ABC,different categories of ______ are assigned to products based on underlying cost drivers of that department.
A)overhead costs
B)opportunity costs
C)average costs
D)sunk costs

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) assigns different categories of overhead costs to products based on the underlying cost drivers of that department. This allows for a more accurate allocation of costs and helps to identify areas where cost reductions can be made. Option B (opportunity costs) and Option D (sunk costs) are not directly related to the categorization of costs under ABC, while Option C (average costs) is too general and does not capture the complexity of ABC.

Under ABC,different Categories of ______ Are Assigned to Products Based