Alerts
Wishlist
Cart
Sign In
Categories
Current Affairs & GK
Current Affairs
Show All Current Affairs & GK
eBooks
General Aptitude
Arithmetic Aptitude
Data Interpretation
Show All General Aptitude
General Knowledge
Basic General Knowledge
General Science
Show All General Knowledge
Medical Science
Anatomy
Biochemical Engineering
Biochemistry
Biotechnology
Microbiology
Show All Medical Science
Technical
Database
Digital Electronics
Electronics
Networking
Show All Technical
Verbal and Reasoning
Logical Reasoning
Verbal Ability
Verbal Reasoning
Show All Verbal and Reasoning
›
What is the main advantage of using activity-based costing (ABC)?
What is the main advantage of using activity-based costing (ABC)?
Expand All
Collapse All
Practice Questions
1 question
Q1
What is the main advantage of using activity-based costing (ABC)?
Simplicity in calculations
More accurate product costing
Lower administrative costs
Easier to implement
Show Solution
Copy
ABC provides more accurate product costing by assigning costs based on actual activities.
Questions & Step-by-step Solutions
1 item
Q
Q: What is the main advantage of using activity-based costing (ABC)?
Solution:
ABC provides more accurate product costing by assigning costs based on actual activities.
Steps: 5
Show Steps
Step 1: Understand that costing is how we figure out how much it costs to make a product.
Step 2: Know that traditional costing methods might not show the true cost of making a product.
Step 3: Learn that activity-based costing (ABC) looks at the actual activities involved in making a product.
Step 4: Realize that ABC assigns costs based on these activities, rather than just spreading costs evenly.
Step 5: Conclude that this method gives a more accurate picture of how much each product really costs.
Related Questions
I
If a company has a net income of $250,000 and total revenue of $1,000,000, what
Question: If a company has a net income of $250,000 and total revenue of $1,000,000, what is the pro..
A
A business incurs a loss of 15% on selling a product for $425. What was the cost
Question: A business incurs a loss of 15% on selling a product for $425. What was the cost price?Opt..
I
If a product is sold for $240 after a discount of 20%, what was the original pri
Question: If a product is sold for $240 after a discount of 20%, what was the original price?Options..
I
If a company has total assets of $1,000,000 and total liabilities of $600,000, w
Question: If a company has total assets of $1,000,000 and total liabilities of $600,000, what is the..
A
A firm has a current ratio of 2:1 and current liabilities of $50,000. What are t
Question: A firm has a current ratio of 2:1 and current liabilities of $50,000. What are the current..
‹
Biology (School & UG)
Chemistry (School & UG)
Civil Engineering
Commerce & Accountancy
Computer Science & IT
Current Affairs & GK
Data Structures & Algorithms
eBooks
Electrical & Electronics Engineering
English (School)
General Aptitude
General Knowledge
General Knowledge & Current Affairs
Languages & Literature
Law & Legal Studies
Major Competitive Exams
Mathematics (School)
Mechanical Engineering
Medical Science
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Social Science (School)
Technical
Verbal and Reasoning
Vocational & Skill Development
›
Soulshift Feedback
×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy
?
0
1
2
3
4
5
6
7
8
9
10
Not likely
Very likely
✕
↑
