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) The cost of the resources supplied to a department and the time it takes to complete the various activities of the department are useD.
This approach only requires the cost of departmental resources and the time it takes to complete various activities in the department.

Question

Quizplus · Accepted Answer

Time-driven activity based costing uses the cost of resources supplied to a department and the time it takes to complete various activities in the department. This approach is simpler and less costly than the traditional ABC system because it does not require a detailed analysis of the cost of resources for each individual item produced.

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