An activity-based costing system improves the allocation of which of the following manufacturing costs?

Question

Quizplus · Accepted Answer

An activity-based costing system improves the allocation of indirect manufacturing costs, which are often difficult to allocate accurately using traditional costing systems. Direct materials and direct labor are typically easy to trace to specific products, while sales commissions are a selling expense and not a manufacturing cost.

An Activity-Based Costing System Improves the Allocation of Which of the Following