How does activity-based costing assign cost to cost objects?
A)by tracing costs to products and then tracing costs to cost objects
B)by tracing costs to departments and then tracing costs to products
C)by tracing costs to activities and then tracing costs to cost objects
D)by tracing costs to customers and then tracing costs to products

Question

Quizplus · Accepted Answer

Activity-based costing assigns costs to cost objects by first tracing costs to activities and then from those activities to the cost objects. This method aims to provide more accurate cost information by linking costs directly to the activities that generate them.

How Does Activity-Based Costing Assign Cost to Cost Objects