In an Activity Based Costing System, the allocation basis that are used for applying costs to services or procedures are called :

CS Executive · Corporate and Management Accounting · PYQS · December 2019
In an Activity Based Costing System, the allocation basis that are used for applying costs to services or procedures are called :
(A) Profit centers
(B) Cost centers
(C) Cost units
(D) Cost drivers

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost Accounting

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