Asked by

Daniel Fredman
on Nov 12, 2024

verifed

Verified

Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labour-hours.

Activity-based Costing

An approach to assigning an organization's overhead costs to specific products or services based on the activities undertaken to produce those products or services.

Direct Labour-hours

Direct labor-hours are the total hours spent by workers who directly contribute to the manufacture of a product, a direct measure of labor input.

Activity Cost Pools

Aggregations of all the costs associated with specific activities, used in activity-based costing to allocate costs more accurately.

  • Identify the differences between standard costing systems and activity-based costing approaches.
verifed

Verified Answer

MC
Michael Crowder-JonesNov 13, 2024
Final Answer:
Get Full Answer