To compute a product's profit or product margin, the product's sales and direct costs are needed in addition to the overhead costs computed in an activity-based costing system.

Question

Quizplus · Accepted Answer

This statement is true. Profit and product margin calculations require information on sales, direct costs, and overhead costs, which are all captured in an activity-based costing system.

To Compute a Product's Profit or Product Margin, the Product's