In ABC system, the allocation basis that are used for applying costs to services or procedures are called:

CS Executive · Cost and Management Accounting · PYQS · June 2019
In ABC system, the allocation basis that are used for applying costs to services or procedures are called:
(A) Cost Pool
(B) Cost Absorption
(C) Cost Object
(D) Cost Driver

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Activity Based Costing (ABC)

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