Question

In an activity-based costing model, total costs directly assigned to cost objectives may include: Group of answer choices Both direct costs and activity costs. Both activity costs and resource costs. Both direct costs and resource costs. Only direct costs.

Answer 1

Both direct costs and activity costs.

Step-by-step explanation:

Activity-based costing model takes into consideration both the direct and activity costs, as it does not omit the overhead or indirect costs, unlike some other costing methods. This costing model, is mostly used in the manufacturing. This method identifies activities and assigns them to each product or service accordingly.