The premise of ABC is that it takes activities to make products and provide services and these activities drive costs.

Name: The premise of ABC is that it takes activities to make products and provide services and these activities drive costs.
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

The premise of ABC (activity-based costing) is indeed that activities drive costs in the production of products and services, rather than just the traditional approach of assigning costs based solely on direct labor or machine hours.

The Premise of ABC Is That It Takes Activities to Make