Activity-based costing is a much simpler and easier method to implement than the direct labour method.

Question

Quizplus · Accepted Answer

Activity-based costing requires a detailed analysis of all activities involved in the production process and their associated costs, which can be time-consuming and complex. Direct labor method, on the other hand, involves the simple calculation of labor costs per unit, making it a relatively straightforward method.

Activity-Based Costing Is a Much Simpler and Easier Method to Implement