Which of the Following Is a Benefit of Activity-Based Costing

question 58

Multiple Choice

Which of the following is a benefit of activity-based costing?

• A)Reduced overhead costs.
• B)More accurate measures of production volume.
• C)Facilitate better product pricing decisions.
• D)Having fewer cost drivers than volume-based costing systems.
• E)More streamlined manufacturing processes.

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Definitions:

Co-Ownership

The condition or act of owning something together with one or more parties.

Capital Contributions

Investments made by owners or partners in a business, typically in the form of cash, property, or other assets, to provide funding for the business.

Management

The process of dealing with or controlling things or people within an organization.

Profit

The financial gain that is made when the revenue from business activities exceeds its costs.