Activity-based costing considers ________ to be the fundamental cost object.
A) activities
B) direct labour hours
C) direct materials
D) finished goods

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) assigns costs to activities that then create the products or services, rather than just looking at the direct labor or materials used. Therefore, the fundamental cost object in ABC is activities.

Activity-Based Costing Considers ________ to Be the Fundamental Cost Object