Costing system charges products only with the costs of the capacity used by those products and not with the cost of unused capacity - activity-based.
What is Costing system?
A costing system is intended to track a company's expenses. The system consists of a collection of forms, procedures, controls, and reporting that are designed to gather and report income, costs, and profitability to management. Customers, departments, buildings, processes, goods & services, research and development and sales regions are all examples of areas that might be reported on. Because costing system reports are intended voor internal use, they are not subject to the disclosure rules of any accounting framework, such as GAAP or IFRS. Instead, management can choose which sorts of information to see, which to disregard, and how the results should be structured and distributed for consumption.
To learn more about Costing system
https://brainly.com/question/24516871
#SPJ4
