The ________ system focuses on activities as the fundamental cost objects. It uses the costs of those activities as building blocks for compiling the indirect costs of products and other cost objects.
A) activities-based costing
B) job costing
C) process costing
D) product costing

Question

Quizplus · Accepted Answer

Activities-based costing (ABC) focuses on activities as the fundamental cost objects and uses the costs of those activities to allocate indirect costs to products or other cost objects. Job costing focuses on assigning costs to specific jobs or batches, process costing is used in industries where production occurs in a continuous process, and product costing is a more general term that can refer to various costing systems used to allocate costs to products or services.

The ________ System Focuses on Activities as the Fundamental Cost