What are the main advantages of volume-based allocation methods compared to activity-based costing?
A)Volume-based methods are easier to use and less costly to implement and maintain.
B)Volume-based methods are more accurate and allowed by GAAP.
C)Volume-based methods are less accurate and easier to use.
D)Volume-based methods are harder to use and more costly to implement and maintain.
E)There are no advantages to using volume-based methods.

Question

Quizplus · Accepted Answer

Volume-based allocation methods are easier to use and less costly to implement and maintain compared to activity-based costing. However, they may not provide as accurate costing information as activity-based costing.

What Are the Main Advantages of Volume-Based Allocation Methods Compared