A costing system, which focuses on individual activities as the particular cost object is classified as __________?
Correct answer: A. activity based costing
- A. activity based costing
- B. improved costing
- C. learned improvements
- D. positive effectiveness
Explanation
Activity-based costing treats activities as cost objects and assigns costs according to the resources those activities consume. This gives more refined cost information than a broad traditional allocation system.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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