What costing system first traces costs to activities and then to products?
A)direct costing
B)absorption costing
C)functional-based costing
D)activity-based costing

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is the costing system that first traces costs to activities and then to products. This method aims to more accurately allocate overhead costs based on the activities that actually contribute to those costs.

What Costing System First Traces Costs to Activities and Then