Because Activity-Based Costing considers the resources each product actually uses,it
A) results in product costs being calculated more accurately.
B) computes allocation rates based primarily on direct labor rates.
C) ultimately calculates a single plantwide allocation rate.
D) can only be used in companies which have process costing.

Question

Quizplus · Accepted Answer

Activity-Based Costing considers the resources each product actually uses, resulting in product costs being calculated more accurately than traditional costing methods that allocate overhead based on a single plantwide allocation rate or direct labor hours.

Because Activity-Based Costing Considers the Resources Each Product Actually Uses,it