The main reason for generating new information provided by activity-based costing is to
A)help managers make better decisions.
B)provide employees in the accounting department with work to do.
C)calculate variances.
D)help human resources hire new staff.

Question

Quizplus · Accepted Answer

The main purpose of activity-based costing is to provide more accurate and detailed information about the costs of products or services. This information can then be used by managers to make better decisions about pricing, product mix, process improvement, and resource allocation. Therefore, the correct answer is A. The other options (B, C, and D) are not the main reasons for generating new information from activity-based costing.

The Main Reason for Generating New Information Provided by Activity-Based