Uniformly assigning the costs of resources to cost objects when those resources are actually used in a non-uniform way is called
A) activity-based costing.
B) menu-based costing.
C) full product-cost allocation.
D) variable product-cost allocation.
E) cost smoothing or peanut butter costing.

Question

Quizplus · Accepted Answer

Cost smoothing or peanut butter costing refers to the practice of spreading costs evenly across cost objects, regardless of the actual consumption of resources, leading to potential inaccuracies in cost allocation.

Uniformly Assigning the Costs of Resources to Cost Objects When