Asked by Mariam Jaser on Jul 11, 2024

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Activity-based costing is only useful in allocating manufacturing overhead costs.

Activity-based Costing

An approach to costing that focuses on activities as the fundamental cost drivers, and assigns costs to products and services based on their consumption of these activities.

Manufacturing Overhead Costs

Costs in the manufacturing process that are not directly attributable to the specific product, including equipment maintenance and factory supervision.

  • Identify the obstacles and difficulties associated with the application of activity-based costing.
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JP
Joseph PalezyanJul 13, 2024
Final Answer :
False
Explanation :
While activity-based costing is commonly used in manufacturing settings, it can also be applied to service industries and other non-manufacturing organizations.