Which of the following statements is True regarding activity-based-costing and profitability analysis?
A) Unit level costing measures the impacts of various products use of resources
B) Full costing measures the impacts of various products on spending for resources
C) Only unit level costing is useful for decision making about products and services
D) Companies with a complex array of products produced from common facilities tend to benefit more . from ABC than companies with a single product

Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) is particularly beneficial for companies with a complex array of products produced from common facilities because it provides a more accurate method of allocating costs to each product. This allows for better decision-making regarding the profitability of each product.

Which of the Following Statements Is True Regarding Activity-Based-Costing and Profitability