Activity-based costing information may be used by managers for
A)process improvement.
B)distribution channel profitability decisions.
C)pricing decisions.
D)process improvement,distribution channel profitability decisions,and pricing decisions.

Question

Quizplus · Accepted Answer

Activity-based costing information can help managers make informed decisions in various areas such as process improvement, distribution channel profitability, and pricing decisions. By analyzing cost drivers and identifying activities that add value to a product or service, managers can focus on improving processes that are inefficient or unprofitable, determine the most profitable distribution channels, and set prices that reflect the true cost of production. Therefore, the best choice is D.

Activity-Based Costing Information May Be Used by Managers for