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a cost management system that provides a structured way of thinking about the relationship between activities and the resources they consume is known as:

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It is known as Activity Based Costing System.

  • ABC is a technique for allocating overhead and indirect costs, such wages and utilities, to goods and services.
  • The ABC method of cost accounting is built on activities, which are defined as any occasion, project, or job with a clear objective.

What, using an example, is activity-based costing?

  • Examples include the amount of space required per product, which is used to divide the rent for the factory and the company's maintenance costs, and
  • the quantity of purchase orders (i.e., PO) used to divide the purchasing costs of the purchasing department.

To Learn more about Activity Based Costing System click the links.

https://brainly.com/question/14347199

https://brainly.com/question/14101653

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