Which of the following statements is true regarding activity-based costing in administration?
A) The principles of ABC are different when applied to administrative services.
B) ABC in administration involves five steps.
C) All cost drivers in an administrative system will be time-related.
D) Activity-based costing for administrative services follows the same four-step procedure described for manufacturing.

Question

Quizplus · Accepted Answer

Activity-based costing for administrative services follows the same four-step procedure as in manufacturing, which includes identifying activities, assigning costs to activities, determining cost drivers, and assigning costs to products or services based on their use of activities.

Which of the Following Statements Is True Regarding Activity-Based Costing