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Exam CSCP topic 1 question 336 discussion

Actual exam question from APICS's CSCP
Question #: 336
Topic #: 1
[All CSCP Questions]

Activity-based costing (ABC) is an example of:

  • A. generally accepted accounting principles.
  • B. inventory classification system.
  • C. asset cost estimate technique.
  • D. cost allocation technique.
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Suggested Answer: D 🗳️
Reference:
https://www.investopedia.com/terms/a/abc.asp
by Sam_malli007 at March 24, 2025, 4:58 p.m.

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Sam_malli007
3 weeks, 4 days ago
Selected Answer: D
**D. Cost allocation technique.** ### **Explanation:** **Activity-Based Costing (ABC)** is a method used to allocate **overhead and indirect costs** to products, services, or activities based on their actual consumption of resources. Unlike traditional costing (which may use broad averages), ABC identifies specific activities that drive costs and assigns expenses more accurately.
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