In an activity based costing implementation, the product's diverse demand is based on _________?
Correct answer: B. all of above
- A. batch size
- B. all of above
- C. process steps
- D. complexity
Explanation
Activity-based costing recognises that products may differ in batch sizes, complexity and the number of process steps they require. Each difference can create different resource consumption, so all the listed factors apply.
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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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