An ABC system results in a better measure of the nonuniformity of a company's resources by jobs, products, or services than by using broad averages to assign costs.

Question

Quizplus · Accepted Answer

ABC (activity-based costing) system focuses on tracing overhead costs to specific activities and then assigning them to individual products, services or jobs based on their usage of those activities. This results in a more accurate measurement of the resources used by different products, services or jobs, as opposed to using broad averages to assign costs. Therefore, option A is correct.

An ABC System Results in a Better Measure of the Nonuniformity