Asked by TEDDY VELISSARIS on Jun 09, 2024
Verified
Which of the following statements is most complete and correct?
A) Activity-based costing uses non-volume-based cost drivers only.
B) Activity-based costing uses volume-based cost drivers.
C) Activity-based costing recognises that both volume-based and non-volume-based cost drivers may be appropriate.
D) None of the given answers.
Activity-based Costing
A methodology that assigns production costs to products based on the activities required to produce them, aiming for more accurate cost allocation.
Volume-based
A pricing or costing method that changes based on the amount of goods or services produced or sold.
Non-volume-based
Refers to costing methods that allocate costs based on factors other than the volume of production, such as time or complexity.
- Understand the distinct classifications of costs within activity-based costing.
Verified Answer
Learning Objectives
- Understand the distinct classifications of costs within activity-based costing.
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