ABC allocates cost pools to cost objectives using cost drivers as the allocation base.

Name: ABC allocates cost pools to cost objectives using cost drivers as the allocation base.
Brand: Quizplus
Rating: 4.7 (28 reviews)

Question

Quizplus · Accepted Answer

Activity Based Costing (ABC) is a costing method that allocates the costs of an organization's support activities to the products and services it provides based on the activities that consume resources. Cost drivers are used as the allocation base to assign the costs of each cost pool to the cost objectives it supports.

ABC Allocates Cost Pools to Cost Objectives Using Cost Drivers