Activity-based-costing analysis makes no distinction between ________.
A) direct-materials inventory and work-in-process inventory
B) short-run variable costs and short-run fixed costs
C) parts of the supply chain
D) components of the value chain

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) focuses on the costs of activities as the basis for allocating costs to products or services, rather than making a distinction between short-run variable costs and short-run fixed costs. It aims to assign costs more accurately to products or services based on the activities that generate those costs.

Activity-Based-Costing Analysis Makes No Distinction Between ________