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 helps to allocate overhead costs more accurately to products based on the activities that actually drive those costs, resulting in more accurate product cost information. It also provides more detailed information on the costs of activities and the drivers of those costs, allowing for more targeted cost reduction efforts.

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