Activity-based costing systems include non-volume-based cost drivers.

Name: Activity-based costing systems include non-volume-based cost drivers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Activity-based costing systems recognize that some costs are not solely driven by volume, and may be better estimated using other measures such as time, complexity, or number of setups. These non-volume-based cost drivers are used to allocate costs more accurately to products or services.

Activity-Based Costing Systems Include Non-Volume-Based Cost Drivers