The main reason for generating new information provided by activity-based costing is to
A)help managers make better decisions.
B)reduce product costs.
C)calculate variances.
D)reduce total overhead costs.

Question

Quizplus · Accepted Answer

The main purpose of activity-based costing is to provide more accurate and detailed information about the costs of various activities within a company. This information can then be used by managers to make better decisions, such as identifying areas where costs can be reduced or where resources can be allocated more effectively. While reducing product costs, calculating variances, and reducing total overhead costs may be potential outcomes of using activity-based costing, the main goal is to improve decision-making.

The Main Reason for Generating New Information Provided by Activity-Based