Costing system, in which individual activities are identified as cost object is considered as
A. manufactured costing
B. activity based costing
C. allocation costing
D. base costing
Answer: Option B
Solution(By Examveda Team)
Costing system, in which individual activities are identified as cost object is considered as activity based costing. The ABC system of cost accounting is based on activities, which is any event, unit of work, or task with a specific goal, such as setting up machines for production, designing products, distributing finished goods, or operating machines.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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