Asked by Javier Lopez on May 26, 2024
Verified
ABC can be used to assign costs to any cost object that is of management interest.
Cost Object
Anything for which a separate measurement of costs is desired, including products, services, projects, activities, or customers.
Management Interest
The concern or focus areas of organizational managers, particularly regarding strategy, operations, and achieving objectives.
- Understand the steps involved in activity-based costing and its purpose in overhead cost allocation.
Verified Answer
VL
Vanessa LaCasciaMay 31, 2024
Final Answer :
True
Explanation :
Activity-based costing (ABC) is a costing method that assigns costs to cost objects based on their use of activities. It is typically used to assign costs to products, customers, or services that are of management interest.
Learning Objectives
- Understand the steps involved in activity-based costing and its purpose in overhead cost allocation.
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