Time-Driven Activity-Based Costing (TDABC) is a before-the-fact simplification method that simplifies the first stage of assigning costs to activities of activity-based costing (ABC) system by:
A)eliminating the need for detailed interviewing and surveying to determine resource drivers.
B)expanding the number of activity rates used so that the rates reflect the actual consumption of overhead costs.
C)allocating weights and setting the result equal to the product's consumption ratio.
D)recognizing that many of the so-called fixed overhead costs vary in proportion to changes other than production volume.

Question

Quizplus · Accepted Answer

TDABC simplifies the first stage of assigning costs to activities by eliminating the need for detailed interviewing and surveying to determine resource drivers. It does not expand the number of activity rates used or allocate weights, nor does it address the recognition of fixed overhead costs.

Time-Driven Activity-Based Costing (TDABC) Is a Before-The-Fact Simplification Method That