Which of the following is an advantage of using activity-based costing (ABC)?
A)It provides management with simpler,less accurate information than traditional costing methods.
B)Fixed costs are presented on a per unit basis.
C)It tends to provide more accurate product cost information.
D)It is typically inexpensive to implement.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) tends to provide more accurate product cost information as it identifies and allocates costs based on the specific activities involved in the production process. Unlike traditional costing methods, ABC considers all activities involved in the production process instead of just direct costs, which can lead to more accurate costing information for each product.

Which of the Following Is an Advantage of Using Activity-Based