An important benefit of activity based costing is
A) The simplicity of cost allocation.
B) The acknowledgment and reward of employee effort.
C) The ability to highlight waste and streamline business processes.
D) The acceptance by stockholders of other sources of financing.
E) The ability to monitor the board of directors.

Question

Quizplus · Accepted Answer

ABC can highlight where wasted activities are occurring or whether activities cost too much relative to the benefits provided. Managers can then take action to correct the problem. By providing this type of information, ABC has become a valuable method for streamlining business processes.

An Important Benefit of Activity Based Costing Is