The greatest benefit of activity analysis is that it directs management accountants to the ________.
A) relevant costs for decision making
B) most accurate product cost
C) appropriate cost driver for each cost
D) most accurate product price

Question

Quizplus · Accepted Answer

Activity analysis helps in identifying the appropriate cost driver for each cost, which is crucial for accurate cost allocation in activity-based costing.

The Greatest Benefit of Activity Analysis Is That It Directs