The cost object(s)of the activity-based costing method is(are):
A)The time period.
B)The production departments of the company.
C)The production activities of the company.
D)The production activities in the first stage and the unit of product in the second stage.
E)The unit of product in the first stage and the production activities in the second stage.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) focuses on the costs of production activities as the primary cost objects in the first stage, allocating costs to these activities. In the second stage, it assigns the costs of these activities to the final cost objects, which are the units of product. This two-stage process helps in accurately tracing the costs associated with specific products.

The Cost Object(s)of the Activity-Based Costing Method Is(are)