Asked by
Christopher McCosker
on Oct 15, 2024
Verified
Activity-based costing eliminates the need for overhead allocation rates.
Activity-based Costing
A costing method that assigns overhead and indirect costs to related products and services based on the amount of resources they use.
Overhead Allocation Rates
The rates used to apply manufacturing overhead to products or job orders based on a relevant activity base.
- Acknowledge the core principles and applications associated with Activity-Based Costing (ABC).
Verified Answer
FB
Learning Objectives
- Acknowledge the core principles and applications associated with Activity-Based Costing (ABC).
Related questions
The Final Step of Activity-Based Costing Assigns Overhead Costs to ...
The Cost Object(s)of the Activity-Based Costing Method Is(are) ...
Activity-Based Costing Often Shifts Overhead Costs from Large Volume,standardized Products ...
Two Big Benefits of ABC Costing Are A)more Accurate Product ...
In Activity-Based Costing,an Activity Can Involve Several Related Tasks