____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.
A)Break-even analysis
B)Variable cost
C)Fixed cost
D)Activity-based costing
E)Semi-fixed cost

Question

Quizplus · Accepted Answer

Activity-based costing recognizes that all activities within a firm contribute to the production, marketing, and delivery of goods and services. It is a cost accounting method that assigns costs to activities based on their use of resources, and then assigns those costs to products or services based on the activities required to produce them. This provides a more accurate picture of the true cost of producing goods and services, and can help managers make better decisions about pricing, production, and resource allocation.

____________ Recognizes That Virtually All Activities Taking Place Within a Firm