30. The end products consume resources in the proportion to the volume of production is the assumption of:
a) Activity based costing system
b) Traditional costing system
c) Hybrid costing system
d) All the above
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It is the assumption of Activity based costing system
- is a method for calculating manufacturing costs. It divides operating costs into various production-related operations.
- Every operation that goes into manufacturing, such as staff inspecting a product, is costed using the ABC scheme.
- Under this method, It is assumed that end goods consume resources in proportion to output volume.
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