Question

Activity-based costing ______. Multiple choice question. always leads to higher product costs than traditional costing only considers manufacturing overhead when computing product costs excludes direct labor from product costs computes product costs in the same way as traditional costing

Answer 1

Activity-based costing always leads to higher product costs than traditional costing.

What is Activity-based costing?

ABC is a costing method that is designed to provide managers with cost information for strategic and other decisions which affect capacity, and therefore, fixed as well as variable costs.

It should be noted that activity-based costing always leads to higher product costs than traditional costing.

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