Activity-based costing provides:
A) more detailed measures of costs than do plantwide or department allocation methods.
B) less detailed measures of costs than do plantwide or department allocation methods.
C) more detailed measures of costs than do plantwide allocations but less than department allocation methods.
D) less detailed measures of costs than do plantwide allocations but more than department allocation methods.

Question

Quizplus · Accepted Answer

Activity-based costing involves allocating costs to specific activities rather than entire departments, allowing for more detailed measures of costs. Plantwide or department allocation methods allocate costs based on a broader level, giving less detailed measures of costs.

Activity-Based Costing Provides