In order to achieve higher quality cost information from the assignment of overhead costs to products manufactured, the use of a predetermined overhead rate is being replaced by:
A)absorption costing.
B)job order costing.
C)activity-based costing.
D)process costing.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) provides more accurate cost information by assigning overhead costs to products based on the actual activities and resources consumed, rather than using a broad predetermined overhead rate.

In Order to Achieve Higher Quality Cost Information from the Assignment