Activity-based costing systems use the quantitative analysis method exclusively for cost estimation because of its accuracy.

Question

Quizplus · Accepted Answer

Because ABC systems have a great number and variety of cost drivers and cost pools it requires many cost relationships to be estimated. ABC systems use a variety of estimation methods - industrial engineering, conference, and quantitative analysis. In making the choice of method to use, managers trade off detail, accuracy, feasibility, and costs of estimating cost functions.

Activity-Based Costing Systems Use the Quantitative Analysis Method Exclusively for Cost