Which is an advantage of an ABC system?
A) ABC results in true product costs
B) ABC has little measurement error
C) ABC systems allow accountants to identify non-value adding activities
D) ABC is inexpensive to implement

Question

Quizplus · Accepted Answer

ABC (Activity-Based Costing) systems help in identifying non-value adding activities by allocating costs based on actual activities and resources used, allowing organizations to improve efficiency by eliminating or reducing these activities.

Which Is an Advantage of an ABC System