Which of the following is a reason that employees must estimate how much time employees spend performing each activity?
A)So that the budget committee will know how to allocate direct material
B)So that the resources consumed by the activities can be calculated
C)So that the level of detail will not become too burdensome
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Estimating how much time employees spend on each activity is necessary to calculate the resources consumed by those activities. This helps in determining the cost of each activity and ultimately, the total cost of producing a product or providing a service. It also helps in identifying areas for improvement and optimizing resource allocation. Option A is incorrect because estimating time spent on activities does not directly relate to the allocation of direct material. Option C is incorrect because the level of detail is necessary for accurate cost analysis. Option D is incorrect because estimating time spent on activities is a crucial step in cost accounting.

Which of the Following Is a Reason That Employees Must