What are costing systems that identify the cost of each activity,such as testing,design,or set-up called?
A)Activity-based costing systems
B)Periodic systems
C)Product systems
D)Hybrid systems

Question

Quizplus · Accepted Answer

Activity-based costing systems are designed to identify the cost of each activity or process within a company. This system is based on the idea that products or services consume the resources of a company, and that each activity or process incurs its own unique set of costs. By identifying and allocating costs based on activity or process, companies can gain a more accurate understanding of their true costs and make better pricing and production decisions.

What Are Costing Systems That Identify the Cost of Each