alleryStart learning →ABC assigns activity costs to products according to what?
ADirect labour hours
BActual consumption
CSelling price share
DEqual division
Answer & Solution
Correct answer: B. Actual consumption
Each product bears activity cost in proportion to the amount of the activity it actually uses.
Keep practising Specialist Cost Management Techniques
Browse all Specialist Cost Management Techniques questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
Working beyond the standard the customer expects is which lean waste?In lean, reworking avoidable errors is which waste?In lean, inactive periods caused by job queues are which waste?In lean, producing more than currently needed is which waste?TOC applied to finance and accounting is called what?How many constraints does a TOC system typically have?Raising overall system throughput requires more flow through what?Which TOC plant type has a one-to-one assembly line sequence?