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.

Question

Quizplus · Accepted Answer

ABC assigns costs to products and services based on the activities that are performed to produce them. The more activities that are performed, the higher the cost. The more volume that is produced, the more activities that are performed, and the higher the cost.

Companies Using Activity-Based Costing (ABC) Have Learned That Costs Are