In activity-based costing,the three informational components to the company are
A)Channels,products and vendors
B)Customers,channels and costs
C)Resources,activities and cost objects
D)Drivers,Products and customers
E)Products,products,products

Question

Quizplus · Accepted Answer

Activity-based costing focuses on identifying and analyzing the resources, activities, and cost objects within a company. Resources refer to the inputs needed to perform activities, while activities are the tasks and processes that consume resources. Cost objects are the products, services, customers, or channels that ultimately generate costs. Therefore, the three informational components in activity-based costing are resources, activities, and cost objects. Choices A, B, and D are incorrect because they either do not capture all three components or include irrelevant elements, such as vendors or drivers. Choice E is also incorrect because it only mentions products, which is only one part of the costing equation.

In Activity-Based Costing,the Three Informational Components to the Company Are