Asked by
Maria Jaimes
on Oct 15, 2024
Verified
The cost object(s) of the activity-based costing method is(are) :
A) The time period.
B) The production departments of the company.
C) The production activities of the company.
D) The production activities in the first stage and the unit of product in the second stage.
E) The unit of product in the first stage and the production activities in the second stage.
Activity-based Costing Method
A costing method that assigns costs to products or services based on the activities they require, aiming for more accurate allocation of overheads.
Cost Object(s)
Any item, activity, or project for which separate measurement of costs is desired, facilitating targeted expense management and financial efficiency.
- Understand the fundamentals and uses of Activity-Based Costing (ABC).
- Understand the function of cost objects within various overhead rate methodologies.
Verified Answer
BO
Learning Objectives
- Understand the fundamentals and uses of Activity-Based Costing (ABC).
- Understand the function of cost objects within various overhead rate methodologies.
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