A system of assigning costs to departments and products on the basis of a variety of activities instead of only one allocation base is called:
A)Plantwide overhead costing.
B)A cost center accounting system.
C)Controllable costing.
D)Activity-based costing.
E)Performance costing.

Question

Quizplus · Accepted Answer

The system described is activity-based costing (ABC), which assigns costs based on multiple activities rather than only one allocation base. The other options do not accurately describe this system.

A System of Assigning Costs to Departments and Products on the Basis