ABC can be used by which of the following companies?
A)Manufacturers
B)Merchandisers
C)Service Providers
D)All of these companies can use ABC.

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) can be used by any type of company, whether they are manufacturers, merchandisers, or service providers. ABC is a method of allocating costs to products or services based on the activities that are involved in producing them, rather than just using a simplistic overhead rate. This approach can provide more accurate information on the true costs of products or services and help managers make better decisions about pricing, product mix, and process improvements. Therefore, all of these companies can benefit from using ABC.

ABC Can Be Used by Which of the Following Companies