Activity-Based Costing (ABC)assigns Costs First to

question 78

Multiple Choice

Activity-based costing (ABC) assigns costs first to

• A)activities,then to the products based on each product's use of activities.
• B)products,then to the activities based on each activity's use of products.
• C)services,then to the activities based on each service's use of activities.
• D)None of the above answers is correct.

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Definitions:

Maximize Utility

An economic principle where individuals or firms aim to achieve the highest satisfaction or profit from their choices.

Households

Units consisting of one or more people who live in the same dwelling and share meals or living accommodation; considered as a single entity for economic analysis.

Satisfaction

The feeling of fulfillment or pleasure derived from achieving a goal, satisfying a desire, or meeting a need.

Service Sector

The segment of the economy that provides intangible goods or services to consumers, including healthcare, education, financial services, and retail.