Activity-based costing (ABC)provides more detailed measures of costs than do plantwide or department allocation methods.

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Activity-based costing is designed to allocate indirect costs based on the activities that drive them, rather than just lumping them together and allocating them across an entire production floor or department. By taking a more detailed approach to cost measurement, ABC can provide a more accurate picture of how costs are incurred by a business, which can help managers make better decisions about pricing, product mix, and resource allocation.

Activity-Based Costing (ABC)provides More Detailed Measures of Costs Than Do