Activity based costing focuses on the cost of resources:
A) budgeted.
B) used.
C) committed.
D) supplied.

Question

Quizplus · Accepted Answer

Activity based costing focuses on the cost of resources used, not simply the budgeted or committed costs. This method allocates costs to specific activities based on the resources they consume, providing a more accurate picture of costs than traditional costing methods that may allocate costs based on assumptions or averages. The goal is to identify and eliminate activities that are unnecessarily costly or do not contribute enough value to the overall operation.

Activity Based Costing Focuses on the Cost of Resources