Tiny Timber Tree Farms Has Decided to Adopt Activity-Based Costing

question 121

Multiple Choice

Tiny Timber Tree Farms has decided to adopt activity-based costing.Which of the following is one likely reason the firm's accountants decided on this approach?

• A)to move from a system that focuses on assigning costs to goods and services to a system that assigns costs to activities
• B)to simplify the process of assigning costs to specific products
• C)to base costing on the amount of direct labour used to produce each product
• D)to provide a more meaningful way to assign overhead costs to specific products

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