________ is considered while choosing a cost allocation base for activity costs in ABC costing.
A)The marketing strategy of the products being produced
B)The product sales price
C)The availability of reliable data and metrics
D)The number of employees in direct labor
E)The number of departments

Question

Quizplus · Accepted Answer

The availability of reliable data and metrics is an important consideration when choosing a cost allocation base for activity costs in ABC costing. Without accurate and reliable data, it can be difficult to allocate costs accurately and make informed decisions based on the results of the costing analysis. The other options listed may be important factors to consider when making business decisions, but they are not directly related to the choice of cost allocation base in ABC costing.

________ Is Considered While Choosing a Cost Allocation Base for Activity