Core Rentals has begun a new system of allocating costs according to the tasks their employees perform and the amount of time they spend on the particular tasks.This practice adopted by Core Rentals is referred to as ____.
A) unit-based accounting
B) time-based auditing
C) task accounting
D) activity-based costing
E) allocation costing

Question

Quizplus · Accepted Answer

Activity-based costing is a method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities.

Core Rentals Has Begun a New System of Allocating Costs