A time-driven ABC system:
A)is difficult to update.
B)is time-consuming, expensive and often inaccurate.
C)requires that only two parameters be updated.
D)is based on theoretical capacity.

Question

Quizplus · Accepted Answer

A time-driven ABC (Activity-Based Costing) system simplifies the traditional ABC system by requiring updates to only two parameters: the cost per time unit of supplying resource capacity and the unit times of consumption of resources by activities. This makes it less time-consuming, expensive, and potentially more accurate than traditional ABC systems.

A Time-Driven ABC System