Which of the following can be used in conjunction with activity-based costing?
A)Job costing
B)Process costing
C)Neither A nor B
D)Both A and B

Question

Quizplus · Accepted Answer

Activity-based costing can be used in conjunction with both job costing and process costing. Activity-based costing is a more detailed and accurate way of cost accounting that allocates indirect costs to specific activities and then assigns those costs to products or services. Job costing is used for tracking costs of custom-made products or services, and process costing is used for mass-produced products or services. By using activity-based costing, companies can determine more accurately the cost of producing either custom-made or mass-produced products or services. Therefore, both options can be used in conjunction with activity-based costing.

Which of the Following Can Be Used in Conjunction with Activity-Based