Activity-based costing can improve costing activity for:
A) Service companies only.
B) Merchandising companies only.
C) Any company in any industry.
D) Manufacturing companies only.
E) Government entities only.

Question

Quizplus · Accepted Answer

Activity-based costing can be used by any company in any industry as it helps to allocate costs more accurately by focusing on the activities that drive costs, rather than just the products or services produced. It can be especially useful in industries with diverse or complex product lines, or those that require significant resources to produce and deliver their products or services.

Activity-Based Costing Can Improve Costing Activity For