Activity-based costing is a technique to improve the reliability of cost assignment
A)to work-in-process inventory.
B)from direct cost pools to distinct types of outputs.
C)from both direct and indirect cost pools to distinct types of outputs.
D)to all types of inventory.
E)from indirect cost pools to distinct types of outputs.

Question

Quizplus · Accepted Answer

Activity-based costing improves the reliability of cost assignment by allocating costs from indirect cost pools to distinct types of outputs, providing a more accurate reflection of the resources consumed by each output.

Activity-Based Costing Is a Technique to Improve the Reliability of Cost