Benefits of activity-based costing include all of the following except:
A)More accurate measures of product costs.
B)More accurate evaluations of product profitability.
C)A better understanding of what "drives" manufacturing overhead costs.
D)More subjective product pricing decisions.

Question

Quizplus · Accepted Answer

Activity-based costing provides more accurate measures of product costs, more accurate evaluations of product profitability, and a better understanding of what "drives" manufacturing overhead costs. However, it does not necessarily lead to more subjective product pricing decisions, as pricing decisions can still be based on market demand and competition.

Benefits of Activity-Based Costing Include All of the Following Except