ABC brings out the cause-and-effect relationships between activities and costs;activities cause resources to be consumed and so have an effect on costs.

Question

Quizplus · Accepted Answer

ABC stands for Activity-Based Costing, a method of assigning costs to products or services based on the activities involved in producing them. ABC recognizes that activities cause resources to be consumed and these activities have an effect on costs. Therefore, the statement is true.

ABC Brings Out the Cause-And-Effect Relationships Between Activities and Costs;activities