Advantages of a time-driven ABC system include:
A)data used are more easily obtained.
B)complex assumptions.
C)theoretical.
D)requires many parameters to be estimated.

Question

Quizplus · Accepted Answer

A time-driven ABC system makes use of estimates of the time spent on various activities rather than the complex and detailed data required by traditional activity-based costing systems. Therefore, the data used is more easily obtained, making it a more practical and feasible option for many organizations. Options B, C, and D are incorrect because they are drawbacks or limitations of the system rather than advantages.

Advantages of a Time-Driven ABC System Include