Activity-based costing (ABC)assigns costs first to
A)activities,then to the products based on each product's use of activities.
B)products,then to the activities based on each activity's use of products.
C)services,then to the activities based on each service's use of activities.
D)None of the above answers is correct.

Question

Quizplus · Accepted Answer

Activity-based costing first assigns costs to activities, and then to the products based on each product's use of activities. This allows for a more accurate allocation of costs to products, as it takes into account the specific activities used in the production process. Option B is incorrect as it would mean assigning costs to products first, which is the opposite of ABC. Option C is incorrect as it refers to services, which is not the primary focus of ABC.

Activity-Based Costing (ABC)assigns Costs First to