What is the cost method where indirect manufacturing overhead costs are allocated to products based on activities performed?
AActivity-Based Costing (ABC)
BProcess Costing
CJob Order Costing
DStandard Costing
Explanation
* Activity-Based Costing (ABC) identifies resource-consuming activities and assigns overhead using activity cost drivers.
* It provides superior costing accuracy compared to traditional volume-based allocation methods.
* Especially useful for multi-product facilities with high overhead complexity.
Exam Relevance
- Topic: Cost Accounting
- Subtopic: Cost Allocation Systems

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