In an activity-based costing model, total costs directly assigned to cost objectives may include: Group of answer choices Both direct costs and activity costs. Both activity costs and resource costs. Both direct costs and resource costs. Only direct costs.

Question

Business

Malcolm

4 January, 14:10

In an activity-based costing model, total costs directly assigned to cost objectives may include: Group of answer choices Both direct costs and activity costs. Both activity costs and resource costs. Both direct costs and resource costs. Only direct costs.

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Answers (1)

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Armando Poole · Answer 1

Both direct costs and activity costs.

Explanation:

Activity-based costing model takes into consideration both the direct and activity costs, as it does not omit the overhead or indirect costs, unlike some other costing methods. This costing model, is mostly used in the manufacturing. This method identifies activities and assigns them to each product or service accordingly.