alleryStart learning →Activity based costing allocates costs on what basis?
ATotal sales volume
BDirect wages paid
CPast experience
DFactors driving costs
Answer & Solution
Correct answer: D. Factors driving costs
Activity based costing assigns costs according to the activities that cause the business to incur them.
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Related questions
Opening stock Rs 40,000, purchases Rs 3,00,000, closing stock Rs 60,000. Cost of goods solStock: 100 units at Rs 10 then 100 at Rs 12. FIFO cost of 150 units sold?List price Rs 50,000, trade discount 10%, freight Rs 1,500. Cost of purchase?A person quits an Rs 8 lakh job for a business earning Rs 5 lakh. Opportunity cost?A machine bought for Rs 5 lakh last year cannot be resold. How is that outlay classed?Making 100 units costs Rs 5,000 and 101 units cost Rs 5,060. Marginal cost of the 101st?A bill has a Rs 500 standing charge plus Rs 4 per unit. Cost for 300 units?Variable cost is Rs 15 a unit; total cost of 2,000 units is Rs 50,000. Fixed cost?