Which of the following best describes a methodology that measures the cost and performance of activities, resources, and cost objects?
A) Value management framework
B) Total benefit of ownership
C) Performance measurement
D) Activity-based costing

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) is a methodology that identifies and analyzes the cost of activities, resources, and cost objects to provide accurate costing information that can be used in decision-making. It helps to identify the activities that add value and those that do not. ABC is particularly useful for organizations that have diverse products or services, and whose traditional costing systems may not be able to capture the true cost drivers.

Which of the Following Best Describes a Methodology That Measures