ABC costing is generally more accurate than traditional cost systems.

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) takes into account the cost drivers of various activities to assign costs to products, services, or customers. This provides a more accurate representation of the actual costs involved in producing a product or providing a service compared to traditional cost systems that rely on broad averages and assumptions. Therefore, ABC costing is generally more accurate than traditional cost systems.

ABC Costing Is Generally More Accurate Than Traditional Cost Systems