The costing system that refines a costing system by identifying individual activities as the fundamental cost object is ________.
A)cost hierarchy
B)cost-allocation base
C)refined-costing system
D)activity-based costing system
E)manager-based costing system

Question

Quizplus · Accepted Answer

The system that refines a costing system by identifying individual activities as the fundamental cost object is called Activity-Based Costing System. This system allocates indirect costs to products or services based on the activities involved in producing them, providing a more accurate and detailed understanding of the cost structure.

The Costing System That Refines a Costing System by Identifying