The Southern Educational Technology Alliance 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 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

This practice of allocating costs based on the tasks and activities performed by employees is known as activity-based costing. It aims to provide more accurate and detailed information on the cost of producing goods or services, by taking into account the specific activities that contribute to those costs.

The Southern Educational Technology Alliance Has Begun a New System