Pace Rentals Has Begun a New System of Allocating Costs

question 131

Multiple Choice

Pace Rentals has begun a new system of allocating costs according to what their employees do, rather than what the company spends. For example, labor expenses are allocated to employee tasks rather than salary and benefits. This practice is referred to as

• A) Cost accounting.
• B) Accounting auditing.
• C) Task accounting.
• D) Activity-based costing.
• E) Allocation costing.