Activity-based costing is determined by charging products for only the services
(activities) they used during production.

Question

Activity-based costing is determined by charging products for only the services 
(activities) they used during production.

Quizplus · Accepted Answer

Activity-based costing is a cost allocation methodology that assigns costs to the various activities involved in producing a product or service, and then charges products only for the activities they used during production. This allows for a more accurate allocation of costs and helps managers to identify areas for cost reduction or process improvement.

Activity-Based Costing Is Determined by Charging Products for Only the Services