Activity-based costing may be used to charge selling and administrative expenses to:
A)types of products sold.
B)sales offices.
C)sales persons.
D)All of the above.

Question

Quizplus · Accepted Answer

Activity-based costing can be used to allocate selling and administrative expenses to various cost objects, including types of products sold, sales offices, and salespersons. By identifying the activities that drive these expenses and allocating them accordingly, ABC provides a more accurate picture of the true cost of selling and administrative activities. Therefore, all of the above options are valid choices for charging these expenses using ABC.

Activity-Based Costing May Be Used to Charge Selling and Administrative