Which of the following statements is true with respect to activity-based costing?
A)The concept of relevant costs and benefits cannot be used in conjunction with an activity-based costing system.
B)The concept of relevant costs and benefits must be modified for use with an activity-based costing system.
C)The concept of relevant costs and benefits can only be used with an activity-based costing system for short-run decisions.
D)The concept of relevant costs and benefits can only be used with an activity-based costing system for outsourcing decisions
E)Generally speaking, the decision maker can better associate relevant costs with the activities that drive them under an activity-based costing system than under a conventional product-costing system.

Question

Quizplus · Accepted Answer

Activity-based costing system provides a more accurate and detailed understanding of the activities and costs of a product, service, or process. With this system, the decision maker can attribute relevant costs more precisely to the activities that drive them, resulting in more accurate and informed decision making. Therefore, the statement that generally speaking, the decision maker can better associate relevant costs with the activities that drive them under an activity-based costing system than under a conventional product-costing system is true.

Which of the Following Statements Is True with Respect to Activity-Based