____________ recognizes that resource expenses are linked to the variety and complexity of goods and services produced and not just on physical volume.
A)Break-even analysis
B)Variable cost
C)Fixed cost
D)Activity-based costing
E)Semi-fixed cost

Question

Quizplus · Accepted Answer

Activity-based costing recognizes that resource expenses are linked to the variety and complexity of goods and services produced, taking into account the different activities that consume resources and assigning costs based on the actual consumption of those activities. This differs from traditional costing methods, which may rely solely on physical volume to allocate costs.

____________ Recognizes That Resource Expenses Are Linked to the Variety