Which of the following is a reason that employees must estimate how much time employees spend performing each activity?
A)So that the budget committee will know how to allocate direct material
B)So that the resources consumed by the activities can be calculated
C)So that the level of detail will not become too burdensome
D)So that the budget committee will know how to allocate direct material and the level of detail will not become too burdensome

Question

Quizplus · Accepted Answer

Estimating the amount of time employees spend on each activity is necessary to calculate the resources consumed by each activity. This information is essential to allocate indirect costs accurately and to identify areas where there may be opportunities for cost reduction or process improvement. The other options are not directly related to the need for time estimation.

Which of the Following Is a Reason That Employees Must