An important use of activity-based costing is to estimate the
A) fixed and variable costs necessary to deliver a product or service.
B) amount of resources consumed in producing a product or service.
C) balanced scorecard for a firm.
D) cycle time for delivering a product or service.

Question

Quizplus · Accepted Answer

Activity-based costing helps to estimate the amount of resources consumed in producing a product or service by identifying and assigning costs to specific activities involved in the production process. This information can be used to improve cost management and pricing decisions. Option A is better suited for traditional costing methods, while options C and D are not directly related to the purpose of activity-based costing.

An Important Use of Activity-Based Costing Is to Estimate the