Activity-based costing takes into account the amount of resources consumed when estimating the cost of a product.

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Activity-based costing is a method of cost accounting that assigns costs to products or services based on the amount of resources consumed by each activity involved in their production or delivery. This approach recognizes that different products or services may consume different amounts of resources, and therefore may have different costs. By identifying and measuring these activities and their associated costs, activity-based costing provides a more accurate and detailed way of estimating the cost of a product or service.

Activity-Based Costing Takes into Account the Amount of Resources Consumed