Activity-based costing focuses on the:
A) cost of departments.
B) cost of direct materials.
C) cost of overhead pools.
D) cost of activities.

Question

Quizplus · Accepted Answer

Activity-based costing focuses on the cost of activities, specifically the cost of resources consumed by each activity to produce a product or service. It provides a more accurate allocation of overhead costs to products or services based on the actual consumption of resources in each activity, rather than simply allocating overhead based on a predetermined rate or direct labor hours.

Activity-Based Costing Focuses on The