Advantages of the time-driven ABC model include all of the following except:
A)cost-driver rates change when there has been a shift in the efficiency of the activity.
B)cost-driver rates can be easily updated.
C)complex assumptions reflect the manufacturing environment.
D)data used are easily observed.

Question

Quizplus · Accepted Answer

The time-driven ABC (Activity-Based Costing) model simplifies the costing process by using fewer, more straightforward assumptions rather than complex ones, making it easier to understand and implement. This contrasts with traditional ABC models, which might rely on more complex assumptions to reflect the manufacturing environment.

Advantages of the Time-Driven ABC Model Include All of the Following