Activity-based costing considers non-volume-related activities that create costs such as:
A)Direct labor usage.
B)Machine operations.
C)Consumption of indirect materials and energy usage.
D)Machine setups and product design changes.

Question

Quizplus · Accepted Answer

Activity-based costing considers non-volume-related activities that create costs, such as machine setups and product design changes, which are not directly related to the volume of production. Options A, B, and C are related to volume-related activities that are considered in traditional costing methods.

Activity-Based Costing Considers Non-Volume-Related Activities That Create Costs Such As