Activity-based costing first assigns costs to activities,then to
A)the products based on each product's use of activities.
B)the plant based on each plant's use of activities.
C)the departments based on each department's use of activities.
D)the industry based on each industry's use of activities.

Question

Quizplus · Accepted Answer

Activity-based costing first identifies and assigns costs to individual activities that are necessary to produce a product or service. The next step is to allocate those costs to the products or services based on their use or consumption of those activities. Therefore, the best choice is A, where costs are assigned to products based on their use of activities. The other options (B, C, D) do not accurately reflect the process of activity-based costing.

Activity-Based Costing First Assigns Costs to Activities,then to