Activity-based costing information
A)should be used when services place similar demands on resources.
B)usually results in peanut butter costing.
C)will yield inaccurate cost numbers when products are similar.
D)helps management reduce costs along the value chain.
E)is best used when overhead costs are minimal.

Question

Quizplus · Accepted Answer

Activity-based costing helps management identify and reduce costs along the value chain by providing more accurate information on the costs of different activities and processes. It allows for a more targeted approach to cost reduction and improved decision making.

Activity-Based Costing Information