A more accurate accounting of the costs to produce a product can be achieved with:

Question

Quizplus · Accepted Answer

Activity-based costing allows for a more accurate allocation of costs to specific activities or processes involved in producing a product. This helps to identify areas where costs can be reduced or eliminated, leading to more efficient production and potentially higher profits. Traditional cost accounting methods may not provide sufficient detail, and correctly distinguishing between internal and external failure costs and prevention and appraisal costs is important but does not necessarily provide a more accurate overall cost accounting.

A More Accurate Accounting of the Costs to Produce a Product