Which one of the following statements about activity-based costing (ABC) is correct?

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) takes into account the effects of activities that actually occur during the production process. It is a modern approach to costing that has gained popularity in recent years due to its ability to provide a more accurate view of the costs associated with producing goods or services. Option B is incorrect as ABC was not in use in advanced industrial economies for over a century, and option C is incorrect as ABC is not an old-fashioned system and is not being replaced by new methods of absorption costing.

Which One of the Following Statements About Activity-Based Costing (ABC)