Question

an activity-based costing system blank . multiple select question. is used for external reporting may exclude some manufacturing costs from product costs only assigns manufacturing costs to products uses numerous overhead cost pools

Answer 1

An activity-based costing system is uses numerous overhead cost pools. Thus, the last option is correct.

What is Activity based costing?

Activity based costing is the technique which is used to calculate the cost based on the activity. It is the prediction of the cost, in which overhead cost and indirect cost are assigned.

This approach allocates fixed and variable expenses, as well as overhead and indirect costs, to relevant goods and services, allowing a business to determine the true cost of a product, service, or activity.

Therefore, it can be concluded that the last option is correct.

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