_____ is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity.
A)Activity-based costing
B)Cost-driver accounting
C)Transaction-based accounting
D)Transaction costing

Question

Quizplus · Accepted Answer

Activity-based costing is a system that accumulates overhead costs for each activity and then assigns those costs to the products, services, or other cost objects that caused the activity. It is an effective method of costing because it provides a more accurate picture of the costs associated with producing a product or service, as it considers all activities involved, not just direct costs. The other options, cost-driver accounting, transaction-based accounting, and transaction costing, do not accurately describe this system.

_____ Is a Name for a System That First Accumulates