Which of the following would most likely be treated as an activity in an activity-based costing system?

Question

Quizplus · Accepted Answer

An activity-based costing system focuses on the cost of individual activities that enable a company to produce goods or services. Machine processing is an activity that incurs costs and therefore would be treated as an activity in an activity-based costing system. Direct materials and direct labor costs would be associated with the production process as a whole, not individual activities, and sales revenues do not incur any costs, so they would not be treated as activities.

Which of the Following Would Most Likely Be Treated as an Activity