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1 year ago

When a company creates overhead rates based on the actions it performs, it is employing an approach called.

1 answer:

6 0

When the overhead rates of a company are created based on the actions performed, this is called activity-based costing.

<h3>What is activity-based costing?</h3>

This refers to a type of costing where a company comes up with manufacturing overhead rates that have to do with the actions performed to make production happen.

For instance, the activities of labor or the manufacturing machines can be used to determine the overhead rates.

In conclusion, creating overhead rates based on the actions it performs is called activity based costing.

Find out more on activity-based costing at brainly.com/question/6654166

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