ABC assumes all costs in a ________ can be grouped together because they all impact the activity.
A)cost pool.
B)department.
C)time period.
D)organization.
E)product line.

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) assumes that costs associated with a particular activity can be grouped together in a cost pool because they all impact that activity. By assigning costs to cost pools, ABC seeks to more accurately allocate indirect costs to products or services, as opposed to traditional costing methods that rely on broad averages for allocation.

ABC Assumes All Costs in a ________ Can Be Grouped