When applying ABC concepts to the determination of product costs, the total costs will be greater than under a traditional costing approach.

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) does not inherently increase or decrease total costs; it more accurately allocates indirect costs to products based on their actual consumption of resources, unlike traditional costing methods which might oversimplify cost allocation.

When Applying ABC Concepts to the Determination of Product Costs