Which of the following are true regarding activity-based costing (ABC)?
A)ABC deals with learning about the cost of activities.
B)ABC rests on the premise that products require activities.
C)ABC rests on the premise that activities consume resources.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct. ABC focuses on identifying the cost of activities that are required to produce a product. This cost is then allocated to the product(s) using various cost drivers. ABC rests on the premise that products require activities, and these activities consume resources.

Which of the Following Are True Regarding Activity-Based Costing (ABC)