The __________________system focuses on activities as the fundamental cost objects.It uses the costs of those activities as building blocks for compiling the indirect costs of products and other cost objects.
A)activities-based costing
B)job costing
C)process costing
D)product costing

Question

Quizplus · Accepted Answer

The given description perfectly matches the activities-based costing system, which considers activities as the fundamental cost objects and then allocates their costs to products and other cost objects. It enables companies to have a more precise understanding of their costs and helps in making informed decisions. Job costing focuses on tracking costs for specific jobs, process costing is used for continuous production of identical units, and product costing is a general term used for various costing systems used in organizations.

The __________________System Focuses on Activities as the Fundamental Cost Objects