Activity-based costing is a costing method that is designed to provide managers with product cost information for external financial reports.

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Activity-based costing is a costing method that is designed to provide managers with detailed information about the costs of individual activities and resources used to produce a product or service. While this information can be used for external reporting, its primary purpose is to help managers make informed decisions about product pricing, process improvements, and resource allocation.

Activity-Based Costing Is a Costing Method That Is Designed to Provide