Companies using activity-based costing (ABC)have learned that costs are a function of
A)volume and activities.
B)time and complexity.
C)volume and time.
D)resources and time.
E)volume and resources.

Question

Quizplus · Accepted Answer

ABC assigns costs based on the relationship between activities and resources consumed, rather than just by volume or resources alone. This allows more accurate cost allocation and better insight into the profitability of individual products and services.

Companies Using Activity-Based Costing (ABC)have Learned That Costs Are a Function