________ is considered while choosing a cost allocation base for activity costs in ABC costing.
A) Marketing strategy and material price level
B) Availability of reliable data and measures
C) Product price level
D) Market share of a product

Question

Quizplus · Accepted Answer

Availability of reliable data and measures is crucial while choosing a cost allocation base for activity costs in ABC costing. The chosen allocation base should accurately capture the underlying activities and should have reliable data available for measurement. Factors such as marketing strategy, product price level, and market share do not directly impact the choice of cost allocation base for activity costs in ABC costing.

________ Is Considered While Choosing a Cost Allocation Base for Activity