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CSCP Exam - Question 334


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

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Sam_malli007Option: D
Mar 24, 2025

**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.