Activity-based costing can help to ascertain an optimal size for the order department

Question

Quizplus · Accepted Answer

Activity-based costing involves identifying the activities involved in a particular business process and assigning costs based on the resources consumed by each activity. By using this method to analyze the order department, it may be possible to identify areas of inefficiency and determine the optimal size for the department. Therefore, activity-based costing can aid in optimizing the size of the order department.

Activity-Based Costing Can Help to Ascertain an Optimal Size for the Order