Cost Accounting Assigns Production Costs Differently, Depending on the Product

Multiple Choice

Cost accounting assigns production costs differently, depending on the product or service. Which choice below best describes activity-based costing?

A) Activity-based costing assigns costs to products or services that meet specific needs of an individual customer.
B) Activity-based costing determines the total cost of the production and averages it over the units produced.
C) Activity-based costing identifies specific business activity pools or fundamental business processes and then assigns costs based on the resources consumed by that activity or process.
D) Activity-based costing assigns costs based on the machinery they are manufactured on.