The relationship between activity-based costing (ABC)and strategic cost management could be described as:
A)Inconsistent.
B)Proportional.
C)Insignificant.
D)Linked.
E)Minimal.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a tool used in strategic cost management as it helps to identify the cost drivers and allocate costs to products, services or customers accurately. The accurate cost information obtained through ABC can be utilized in making strategic decisions, such as pricing and product mix decisions. Therefore, ABC and strategic cost management are linked.

The Relationship Between Activity-Based Costing (ABC)and Strategic Cost Management Could