Question

Which of the following would most likely be treated as an activity in an activity-based costing system? direct materials cost sales revenues machine processing direct labor cost

Answer 1

Answer: the correct answer is machine processing

Explanation:

Activity-based costing (ABC) is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products. Indirect costs, such as management and office staff salaries, are sometimes difficult to assign to a product.