The _____ costing method allocates costs across business processes, and provides a more accurate picture of how costs should be charged to products and services.
A) sales
B) production
C) activity-based
D) capital
E) operational

Question

Quizplus · Accepted Answer

The activity-based costing method allocates costs based on specific activities or processes that go into producing a product or providing a service. This approach provides a more accurate picture of how costs are incurred and how they should be charged to products and services. Sales and production costing methods do not provide the same level of detail, while capital and operational costing methods are focused on different aspects of business finance.

The _____ Costing Method Allocates Costs Across Business Processes, and Provides