Cost attribution to cost units on the basis of benefit received from indirect activities, such as ordering, setting-up, assuring quality is known as —

CS Executive · Cost and Management Accounting · PYQS · December 2014
Cost attribution to cost units on the basis of benefit received from indirect activities, such as ordering, setting-up, assuring quality is known as —
(A) Allocation
(B) Activity based costing
(C) Always better control
(D) Absorption.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Activity based costing.

Topics: Costing Methods

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