The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is:
A)Departmental approach.
B)Activity-based approach.
C)Direct approach.
D)Accounting approach.
E)Joint product costing.

Question

Quizplus · Accepted Answer

The activity-based approach has gained popularity because it provides a more accurate allocation of costs by identifying the specific activities and resources that contribute to the cost of a product or service. This method allows for a detailed level of analysis and can lead to better decision making.

The Cost Allocation Method Most Widely Used Because of Its