Activity-Based-Costing (ABC) cost drivers should reflect cause and effect relations between resource spending and use.

Name: Activity-Based-Costing (ABC) cost drivers should reflect cause and effect relations between resource spending and use.
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Question

Quizplus · Accepted Answer

Activity-Based Costing (ABC) uses cost drivers to trace activities to products or services, emphasizing the cause-and-effect relationship between the costs incurred and the activities that drive those costs.

Activity-Based-Costing (ABC) Cost Drivers Should Reflect Cause and Effect Relations