write:2eSlide # 3Q1:Activity-Based Costing (ABC)•ABC is a method of cost system refinement. •Indirect costs are divided into “sub-pools” of costs of activities. •Activity cost

2eSlide # 3Q1:Activity-Based Costing (ABC)•ABC is a method of cost system refinement.•Indirect costs are divided into “sub-pools” of costs of activities.•Activity costs are then allocated to the final cost objects using a cost allocation base (more commonly called cost driversin ABC).•Activities are measurable
making it more likely that cost drivers can be found so that a final cost object will absorb indirect costs in proportion to its use of the activity.