Under the ABC costing method, a

Accounting Oct 06, 2020

Under the ABC costing method,

a.activity rates are calculated by dividing the budgeted activity cost by the total activity-base usage.

b.departments are identified as activities.

c.the budgetary activity costs are assigned to products using factory overhead rates for each activity.

d.All of these choices are correct.

Expert Solution

Under ABC Costing Method the budgetary activity costs are assigned to products using factory overhead rates for each activity, departments are identified as activities and activity rates are calculated by dividing the budgeted activity cost by the total activity-base usage.

The correct option is D "All of these choices are correct".

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