Which of the following statements is true regarding time equations used in time-driven activity-based costing?
A) Time equations cannot adjust extra time for new vendors.
B) Time equations allow managers to adjust the times for orders with different characteristics.
C) Time equations cannot be used where there is a maximum size of an order that can be inspected or transported to the warehouse.
D) Time equations are only used as part of unmodified ABC systems.

Question

Quizplus · Accepted Answer

Time equations in time-driven activity-based costing allow managers to adjust the time allocated for activities based on the specific characteristics of orders, such as size or complexity, making them flexible and adaptable to different scenarios.

Which of the Following Statements Is True Regarding Time Equations