Which of the following is a benefit of activity-based costing?
A)Reduced overhead costs.
B)More accurate measures of production volume.
C)Facilitate better product pricing decisions.
D)Having fewer cost drivers than volume-based costing systems.
E)More streamlined manufacturing processes.

Question

Quizplus · Accepted Answer

Activity-based costing provides more accurate cost information by assigning costs to activities based on their use of resources. This allows for better pricing decisions by ensuring that product prices more accurately reflect the costs to produce them.

Which of the Following Is a Benefit of Activity-Based Costing