Activity-based costing considers __________________ to be the fundamental cost object.
A)activities
B)direct labor hours
C)direct materials
D)finished goods

Question

Quizplus · Accepted Answer

Activity-based costing considers activities to be the fundamental cost object. This means that the cost of each activity is identified and assigned to the products or services that use them, providing a more accurate picture of the true cost of each product or service. Direct labor hours, direct materials, and finished goods are not the fundamental cost objects in activity-based costing.

Activity-Based Costing Considers __________________ to Be the Fundamental Cost Object