Activity-based costing
A)strives to create an environment that will enable works to manufacture zero-defect products.
B)is the process of choosing among competing alternatives.
C)was established in response to financial scandals.
D)encourages process-value analysis.

Question

Quizplus · Accepted Answer

Activity-based costing encourages process-value analysis, which involves analyzing each step in a production process to determine its value and cost. It aims to allocate costs more accurately by identifying and assigning costs to the specific activities that drive them, allowing managers to make more informed decisions about product pricing, performance, and profitability.

Activity-Based Costing