Q537
In activity based costing method implementation, an output unit level costs are classified as
A.
indirect costs
AnswerB.
direct cost
C.
labour cost
D.
raw material cost
Answer: Option A
Solution
Answer: Option A
Solution:
In activity based costing method implementation, an output unit level costs are classified as indirect costs. Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.