APICS Certified Supply Chain Professional (CSCP) — Question 494

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

Answer options

• A. generally accepted accounting principles.
• B. inventory classification system.
• C. asset cost estimate technique.
• D. cost allocation technique.

Correct answer: D

Explanation

Activity-based costing (ABC) is designed to allocate costs to specific activities, making it a cost allocation technique. The other options either refer to broader accounting principles, methods of classification, or estimation techniques that do not specifically pertain to cost allocation.