Activity-based costing is based on the concept that products produce activities and activities
produce resources.
Group of answer choices
True
False
Answer: True
Explanation:
Activity costin mainly based on the concept of produce product activities. Activity based costing method that identifies activities in organization and assigns the cost of each activity to all products and services according to the actual consumption in each product activities.
The activity based costing is mainly assigns more indirect costs into direct costs compared to conventional costing.
Therfore, Activity-based costing is based on the concept that products produce activities and activities produce resources is true.
Thus, the given statement is true.
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