Individual activities such as machine setups, material handling, customer service and distribution of products are a part of
A. activity based costing
B. margin based costing
C. goodness of costing
D. handling based costing
Answer: Option A
Solution(By Examveda Team)
Individual activities such as machine setups, material handling, customer service and distribution of products are a part of activity based costing. The Activity-Based Costing (ABC) is a costing system which focuses on activities performed to produce products.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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