Which of the following does ABC take into account?
A)The types of manufacturing activities used by the product
B)The extent to which the manufacturing activities are used by the product
C)Both A and B
D)Neither A nor B

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) takes into account both the types of manufacturing activities used by the product and the extent to which these activities are used by the product. By allocating costs based on the actual consumption of resources, ABC provides a more accurate understanding of the true cost of producing a product or providing a service.

Which of the Following Does ABC Take into Account