Which of these do managers use in choosing activities and cost drivers to include in an ABC system?
A) Linear programming
B) Simple regression
C) Cost benefit analysis
D) Activity-based management

Question

Quizplus · Accepted Answer

Managers use cost-benefit analysis to decide which activities and cost drivers to include in an Activity-Based Costing (ABC) system. This involves weighing the costs of implementing and maintaining the ABC system for specific activities and cost drivers against the benefits derived from the more accurate cost information.

Which of These Do Managers Use in Choosing Activities and Cost