Purchasers can use activity-based costing to:
A)eliminate nonvalue-adding activities.
B)reduce activity occurrences.
C)reduce the cost driver rate.
D)eliminate nonvalue-adding activities and reduce the cost driver rate.
E)eliminate nonvalue-adding activities,reduce activity occurrences and reduce the cost driver rate.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) helps purchasers identify nonvalue-adding activities, reduce the number of times an activity is performed (activity occurrences), and lower the cost per activity (cost driver rate). This comprehensive approach aims at efficiency and cost reduction.

Purchasers Can Use Activity-Based Costing To