When comparing activity-based costing with conventional costing methods,which of the following is the key benefit of the method?

Question

Quizplus · Accepted Answer

Activity-based costing provides more accurate cost numbers by identifying and allocating costs based on the specific activities that drive them, rather than just averaging costs across a broader category or using volume-related factors as the sole driver of costs. While it may require more time and resources to implement, the increased accuracy can ultimately lead to better decision-making and cost management. Choice A, B, and C are incorrect because activity-based costing is typically more expensive, more detailed, and more complex than traditional costing methods.

When Comparing Activity-Based Costing with Conventional Costing Methods,which of the Following