What costing method can help a company to become more competitive by providing more accurate cost data?
A)unit-based costing
B)volume-based costing
C)production costing
D)activity-based costing

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a costing method that helps a company to become more competitive by providing more accurate cost data. Instead of simply allocating costs based on volume or production, ABC identifies the specific activities that drive costs and assigns those costs to the products or services that consume those activities, resulting in more accurate cost information. This can help the company make better decisions about pricing, product mix, and production processes, ultimately becoming more competitive in the marketplace.

What Costing Method Can Help a Company to Become More