Which of the following statements is true regarding time-driven activity-based costs?
A) A manager needs to determine the cost of resources for each individual item produced.
B) This approach requires interviews and surveys from multiple managers and employees.
C) It is more costly than the unmodified ABC system.
D) It uses the cost of the resources supplied to a department and the time it takes to complete the various activities of the department.

Question

Quizplus · Accepted Answer

Time-driven activity-based costing (TDABC) uses the cost of resources supplied to a department and the time it takes to complete various activities, making it simpler and less costly than traditional ABC systems.

Which of the Following Statements Is True Regarding Time-Driven Activity-Based