Manufacturing firm managers generally believe that ABC provides less support for financial, operational and strategic decisions.

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore "fixed" as well as variable costs. It is more accurate and provides more detailed information on the costs of specific activities, making it supportive for financial, operational, and strategic decisions.

Manufacturing Firm Managers Generally Believe That ABC Provides Less Support