An adaptation of ABC costing that emphasizes resource consumption cost pools is:
A)Activity analysis.
B)Multistage ABC.
C)Time-Driven ABC.
D)Resource Consumption Accounting.
E)Customer profitability analysis.

Question

Quizplus · Accepted Answer

Resource Consumption Accounting (RCA) is an adaptation of ABC costing that emphasizes resource consumption cost pools. It focuses on identifying and measuring the costs of resources consumed by each activity or process and assigns them to cost objects based on their actual consumption. RCA provides more accurate cost information and helps organizations improve resource utilization and performance. Activity analysis, multistage ABC, time-driven ABC, and customer profitability analysis are not the same as RCA.

An Adaptation of ABC Costing That Emphasizes Resource Consumption Cost