3 Questions
Which of the following best describes activity-based costing (ABC)?
A costing method that assigns indirect costs to related products and services
Which industry is activity-based costing (ABC) mostly used in?
Manufacturing industry
What is the purpose of using activity-based costing (ABC)?
To get a better grasp on costs
Test your knowledge on Activity-Based Costing (ABC), an accounting method that assigns overhead and indirect costs to related products and services, recognizing the relationship between costs, overhead activities, and manufactured products. This quiz will assess your understanding of how ABC differs from traditional costing methods and how indirect costs are assigned to products.
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