__________ links costs to the corporation's strategy for production of goods and services.
A)Activity-based costing
B)Job-order costing
C)Process costing
D)Manufacturing costing

Question

Quizplus · Accepted Answer

Activity-based costing is a costing method that links costs to the corporation's strategy for production of goods and services. It identifies activities that consume resources and assigns costs to those activities based on their use of resources. This method provides more accurate and detailed information, enabling better decision-making for effective strategy implementation. Job-order costing is used for the production of custom-made products, while process costing is used for mass-produced products. Manufacturing costing is a generic term that encompasses various costing methods used in the manufacturing process.

__________ Links Costs to the Corporation's Strategy for Production of Goods