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What are the two main types of output in Activity-based costing?

What are the two main types of output in Activity-based costing?

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Answer #1

The name of Activity-Based Costing means that the costs are allocated based each activity cost driver so that it can be judged as costs are perfectly allocated to the products manufactured.

The main two type of output in Activity-Based Costing is the when costs are incurred during the manufacturing process of a product, the first one is to identifying relevant cost drivers for each type of cost that were incurred and the second one is allocating such costs to the products based on the cost drivers identified.

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