Which of the following is a trait of an activity-based cost management system?
A)allocation-intensive
B)narrow and rigid product costing
C)non-unit-based drivers
D)focus on managing costs

Question

Quizplus · Accepted Answer

Activity-based cost management systems use non-unit-based drivers to allocate costs to products and services, such as the number of setups, machine hours or orders, which better reflects the actual usage of resources. This allows for a more accurate and detailed understanding of costs, which can lead to better cost management decisions. Allocation-intensive, narrow and rigid product costing, and focus on managing costs are not exclusive traits of activity-based cost management systems.

Which of the Following Is a Trait of an Activity-Based