Relative to traditional product costing,activity-based costing differs in the way costs are
A)processed.
B)allocated.
C)benchmarked.
D)incurred.

Question

Quizplus · Accepted Answer

Activity-based costing differs from traditional product costing in the way costs are allocated. Instead of assigning costs based on broad categories like direct labor or machine hours, activity-based costing assigns costs to specific activities that contribute to the production of a product or service. This method provides a more accurate picture of the costs associated with each product or service.

Relative to Traditional Product Costing,activity-Based Costing Differs in the Way