Performing a detailed analysis of cost per unit and cost drivers is an essential prerequisite for using:
A) concurrent engineering
B) activity-based costing
C) computer-integrated manufacturing
D) flexible manufacturing

Question

Quizplus · Accepted Answer

Activity-based costing requires a detailed analysis of cost per unit and cost drivers to accurately allocate indirect costs to products or services. Concurrent engineering, computer-integrated manufacturing, and flexible manufacturing do not require this level of cost analysis.

Performing a Detailed Analysis of Cost Per Unit and Cost