It is always better to use activity-based costing information than to use average cost information.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) provides more accurate costing information by assigning costs to products based on the activities they require, but it may not always be better due to its complexity and cost of implementation. Average cost information, while less precise, can be sufficient and more cost-effective for some decision-making processes, especially in smaller or less complex operations.

It Is Always Better to Use Activity-Based Costing Information Than