Benefits of using activity-based accounting include all of the following except ________.
A) costs are pinpointed by activity instead of being charged to overhead
B) cost allocations are based on the portion of activities that can be directly traced to a finished product
C) allocation of costs can be traced to the volume of production
D) costs associated with an activity for a particular product can now be traced

Question

Quizplus · Accepted Answer

Activity-based accounting focuses on identifying and allocating costs based on activities that consume resources, rather than on volume of production. This method allows for more accurate cost allocation to products or services based on the actual activities involved, rather than simply distributing costs based on production volume.

Benefits of Using Activity-Based Accounting Include All of the Following