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Commerce · Q426

Costing

Graduate and Post Graduate · Commerce · question 426

Q426

Individual activities such as machine setups, material handling, customer service and distribution of products are a part of

A.
activity based costing
Answer
B.
margin based costing
C.
goodness of costing
D.
handling based costing

Answer: Option A

Solution

Answer: Option A
Solution:
Individual activities such as machine setups, material handling, customer service and distribution of products are a part of activity based costing. The Activity-Based Costing (ABC) is a costing system which focuses on activities performed to produce products.