Question

The reasoning behind ABC cost allocation is that products consume activities and activities consume resources. true or false

Answer 1

True

Step-by-step explanation:

ABC that stand for activity-based costing is an approach used to assign the overhead cost to products. it is different from the traditional way of assigning cost which based on machine hours.

In ABC costing approach, the cost is assigned to the activities that are actually responsible for overhead. it is responsible for assigning the cost of labors and other process in the project.