Which of the following statements is characteristic of ABC?
A)A vital attribute of an ABC database is the cost of individual departments.
B)The ultimate objective of activity classification is to build heterogeneous cost pools.
C)When unbundling general ledger costs to an ABC database,we are more concerned about "How are the dollars spent?" than "What is spent?"
D)ABC costs are calculated once used until the product is discontinued.

Question

Quizplus · Accepted Answer

The focus of Activity-Based Costing (ABC) is on understanding how and where resources are consumed in the process of providing a product or service, rather than just what the costs are. This approach helps in identifying the activities that incur costs and tracing these costs more accurately to products or services.

Which of the Following Statements Is Characteristic of ABC