Q525
In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as
A.
different task
B.
purpose cost
C.
an activity
AnswerD.
an allocation cost
Answer: Option C
Solution
Answer: Option C
Solution:
In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as an activity. Activity-based costing (ABC) is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products.