In What Way Is Activity Based Costing (ABC)particularly Helpful for Management

question 16

Multiple Choice

In what way is activity based costing (ABC) particularly helpful for management seeking to control environmental costs?

• A) ABC focuses on cost drivers that are more closely related to the incurrence of costs.
• B) Because ABC is a relatively recent technique;it is more likely to be useful to managers in today's society,which has recently become environmentally aware.
• C) ABC focuses on activities that cause costs and selects volume-related cost drivers to allocate those costs to products.
• D) ABC focuses on activities that cause costs and this focus enables managers to see how environmental costs are generated,and therefore control and reduce them.

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Definitions:

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