What technique is used by managerial accountants to assign product costs based on links between activities that drive costs and the production of specific products?
A) actual basis costing
B) activity-based costing
C) actuarial-based costing
D) break-even analysis

Question

Quizplus · Accepted Answer

Activity-based costing is the technique used by managerial accountants to assign product costs based on links between activities that drive costs and the production of specific products. This allows for a more accurate and detailed understanding of the costs associated with each product, and helps managers make better decisions regarding pricing, production volumes, and cost reductions. The other options listed (actual basis costing, actuarial-based costing, break-even analysis) are not directly related to assigning product costs based on activity links.

What Technique Is Used by Managerial Accountants to Assign Product