Activity-based-costing (ABC) systems are generally prevalent in companies seeking to increase ____ and ____.
A) cost accuracy and usefulness
B) cost accumulation and cost assignment
C) cost allocation and cost containment
D) product costing and cost allocation

Question

Quizplus · Accepted Answer

Activity-based-costing systems are designed to provide more accurate and useful cost information by identifying the specific activities that drive costs and allocating those costs to products or services based on their use of those activities. This helps companies to better understand their cost structure and make more informed decisions about pricing, product mix, and process improvement.

Activity-Based-Costing (ABC) Systems Are Generally Prevalent in Companies Seeking to Increase