A well designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis
A)can be used to improve the efficiency of activities.
B)is easy to analyze and interpret.
C)takes the choices and judgement challenges away from managers.
D)emphasizes how managers can achieve higher sales.
E)helps identify trends in the market place.

Question

Quizplus · Accepted Answer

Activity-based cost systems provide detailed information on the costs of individual activities, which managers can use to identify inefficiencies and make improvements. This leads to better decision-making and ultimately, more efficient use of resources.

A Well Designed, Activity-Based Cost System Helps Managers Make Better