Which one of the following accounts is not used in an activity-based costing (ABC) system?
A) Materials Inventory.
B) Work-in-Process Inventory.
C) Finished Goods Inventory.
D) Allocations Incurred.

Question

Quizplus · Accepted Answer

Allocations Incurred is not a specific account used in ABC systems; instead, ABC focuses on assigning costs to activities and then to products, rather than using traditional allocation methods.

Which One of the Following Accounts Is Not Used in an Activity-Based