Using activity-based costing information with differential analysis can lead to better decisions.

Question

Quizplus · Accepted Answer

Activity-based costing provides a more accurate allocation of overhead costs to products or services, which can help in making better decisions. Differential analysis involves comparing the costs and benefits of different options, and using activity-based costing information can provide more accurate cost data for this analysis, leading to better decisions.

Using Activity-Based Costing Information with Differential Analysis Can Lead to Better