Asked by Andrea Diaz-Rodriguez on Jun 16, 2024
Verified
Activity-based costing is a method of accumulating and allocating costs by department.
Activity-Based Costing
A costing method that assigns costs to products or services based on the activities and resources that go into producing them.
Accumulating
The process of gathering or collecting items over a period of time.
Allocating
The process of distributing resources or expenses among departments, projects, or activities based on set criteria or methods.
- Grasp the concept of activity-based costing and its differences from traditional costing methods.
Verified Answer
CC
Courtney CallahanJun 21, 2024
Final Answer :
False
Explanation :
Activity-based costing is a method of accumulating and allocating costs to products or services based on their actual consumption of resources, rather than by department.
Learning Objectives
- Grasp the concept of activity-based costing and its differences from traditional costing methods.