Conventional cost management systems use production volume as the measure of activity.Contemporary systems might use which of the following as activity measures:
A) number of batches
B) number of customers
C) number of product lines
D) All of the given answers

Question

Quizplus · Accepted Answer

Contemporary cost management systems can use multiple activity measures to better understand costs and their drivers. The number of batches, number of customers, and number of product lines are all examples of potential activity measures that can provide more accurate costing information. Therefore, all of the given answers are appropriate choices for contemporary cost management systems.

Conventional Cost Management Systems Use Production Volume as the Measure