What costing method can help a company to become more competitive by providing more accurate cost data?
A) production costing
B) unit-based costing
C) volume-based costing
D) activity-based costing

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a more accurate costing method as it takes into consideration different activities involved in producing a product or service and assigns costs accordingly. It helps in identifying the activities that add value and reducing or eliminating activities that do not add value, making the company more competitive. This, in turn, provides more accurate cost data for decision-making.

What Costing Method Can Help a Company to Become More