alleryStart learning →In the CIMA description of ABC, activities are assigned to what?
ACost objects
BBudget lines
CTax heads
DSuppliers
Answer & Solution
Correct answer: A. Cost objects
Resources go to activities and activities go on to cost objects based on consumption.
Keep practising Total Absorption Costing
Browse all Total Absorption Costing questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
In which journal did Cooper and Kaplan publish ABC articles from 1988?Drucker said ABC also records the cost of what?What limits the use of ABC, especially in services?What is a danger of ABC, like other cost allocation approaches?The chief executive's salary stays unassigned in ABC. What are such costs termed?Why did indirect costs rise relative to direct costs in modern factories?How does ABC assign costs, rather than using broad arbitrary percentages?Broad overhead percentages on common costs risk what outcome among products?