When constructing a budget using ABC concepts, it is difficult to understand why costs occur and hard to mange costs to improve profitability.

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) is designed to provide more accurate cost information by assigning costs to activities based on their use of resources, making it easier to understand why costs occur and to manage them effectively to improve profitability.

When Constructing a Budget Using ABC Concepts, It Is Difficult