In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as

A. different task

B. purpose cost

C. an activity

D. an allocation cost

Answer: Option C

Solution(By Examveda Team)

In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as an activity. Activity-based costing (ABC) is an accounting method that identifies and assigns costs to overhead activities and then assigns those costs to products.