Two main benefits of ABC are (1)more accurate product cost information and (2)more detailed information on the costs of activities and the drivers of those costs.

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) provides more accurate product cost information by assigning overhead costs to specific activities and then allocating them to products based on their use of those activities. It also provides more detailed information on the costs of activities and the drivers of those costs, which can help in identifying areas for cost reduction and process improvement.

Two Main Benefits of ABC Are (1)more Accurate Product Cost