Similar to other costing systems that include allocation, ABC cost information may be misleading for decision making purposes. To combat this problem, costs within an activity can be classified as:
A) Flexible or committed
B) Flexible or variable
C) Fixed or committed
D) Product or period

Question

Quizplus · Accepted Answer

Flexible or committed costs classification helps in understanding how costs behave with changes in activity levels and how they are committed over time, aiding in more accurate decision making.

Similar to Other Costing Systems That Include Allocation, ABC Cost