The individual activities such as machine setups, material handling, customer service and distribution of products are a part of ___________?
Correct answer: A. activity based costing
- A. activity based costing
- B. margin based costing
- C. goodness of costing
- D. handling based costing
Explanation
Activity-based costing assigns costs through activities such as machine setups, material handling, customer service and distribution. These activities act as cost pools or cost drivers in ABC.
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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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