Question

the cost object(s) of the activity-based costing method is(are): Multiple Choice The unit of product. The production departments of the company. The production activities of the company. The production activities in the first stage and the unit of product in the second stage. The unit of product in the first stage and the production activities in the second stage.

Answer 1

Answer: d. The production activities in the first stage and the unit of product in the second stage

Explanation:

Activity based Costing is primarily a method of assigning indirect costs like administrative expenses to the goods and services manufactured by a company by basing it on the activities of the company.

With Activity Based Costing, the company aims to figure out how much these aforementioned activities cost first and then calculating the cost per unit in the second stage by assigning cost per level of activity.