The costing technique, which classify all the activities in costing hierarchy is classified as ____________?

Correct answer: A. activity based costing

  • A. activity based costing
  • B. non-financial costing
  • C. profit costing
  • D. lump sum costingHire Grant Writers

Explanation

Activity-based costing assigns costs through activities and classifies them into levels such as unit-level, batch-level, product-level and facility-level activities. The other options are not recognized costing techniques for this hierarchy.

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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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