Which of the following is not normally associated with activity-based costing?
A)Activity cost pools.
B)Multiple cost drivers.
C)Reduction of non-value-adding costs.
D)High direct labor costs relative to manufacturing overhead costs.
E)Improved decision-making and pricing.

Question

Quizplus · Accepted Answer

Activity-based costing is used to allocate indirect costs to products or services based on the activities that consume those resources. It does not depend on whether the manufacturing overhead costs are higher or lower than direct labor costs.

Which of the Following Is Not Normally Associated with Activity-Based