Pakistan's best MCQs practice hub — FPSC · PPSC · CSS · NTS · Other Exams
Login

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
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

No Comments

Leave a comment

Your email address will not be published. Required fields are marked *