In activity-based costing, there are a number of activity cost pools, each of which is allocated to products and other costing objects using its own unique measure of activity

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Activity-based costing differs from traditional costing systems in that it examines and allocates costs based on activities involved in production, rather than simply allocating costs based on a single overhead rate or direct labor hours. This approach provides a more accurate reflection of the true cost of products and helps businesses identify which activities are driving costs and where efficiencies can be gained.

In Activity-Based Costing, There Are a Number of Activity Cost