COST ACCOUNTING
ACTIVITY BASED MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Product Cost Approach
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Comprehensive System
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ABC System For Indirect Costs
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Simple Approach
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Detailed explanation-1: -Answer and Explanation: The answer is (c) It requires few calculations to determine the costs of products and services.
Detailed explanation-2: -Answer and Explanation: In activity-based costing, most facility-level costs are not assigned to products. These include costs organization-sustaining costs like administrative expenses, selling expenses, and other customer-sustaining costs like marketing.
Detailed explanation-3: -Activity-based costing (ABC) is a method of assigning overhead and indirect costs-such as salaries and utilities-to products and services. The ABC system of cost accounting is based on activities, which are considered any event, unit of work, or task with a specific goal.
Detailed explanation-4: -Activity-Based Costing (ABC) Question 9 Detailed Solution ABC is an accounting technique that allocates expenses to activities rather than products or services. This allows for more precise allocation of resources and overhead expenses to the products and services that consume them.