Asked by
Ashanta Campbell
on Nov 17, 2024
Verified
Activity-based costing is a method of accumulating and allocating costs by department.
Activity-Based Costing
An accounting method that allocates costs to specific activities for more accurate product costing.
Accumulating
The process of gathering or amassing over a period of time.
Allocating
The process of apportioning costs or resources among departments, activities, or products.
- Differentiate between activity-based costing and traditional costing methods.
Verified Answer
SJ
Learning Objectives
- Differentiate between activity-based costing and traditional costing methods.