Activity-based costing analysis takes a long-run perspective and treats all activity costs as variable costs.

Question

Quizplus · Accepted Answer

Activity-based costing analysis takes into account variable costs associated with various activities involved in producing a product or providing a service. It considers a long-run perspective and assigns costs to activities based on their level of consumption. Therefore, it treats all activity costs as variable costs.

Activity-Based Costing Analysis Takes a Long-Run Perspective and Treats All