• 1 Marks

MI – Nov 2023 – L1 – SA – Q9 – Costing Methods

Identifying activities that are part of Activity-Based Costing (ABC).

Activities such as customer service and distribution, material handling, and set-ups are part of:
A. Standard costing
B. Marginal costing
C. Contract costing
D. Activity-based costing
E. Job costing

D. Activity-based costing

Explanation:
Activity-Based Costing (ABC) involves assigning costs to specific activities such as customer service, material handling, distribution, and set-ups. These activities are then allocated to products or services based on their usage of these activities. This makes option D the correct answer.

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