Question

What is the primary benefit of activity-based costing? Arbitrary allocations of overhead costs All these are primary benefits of ABC More cost pools and therefore more accurate product costing The cost of implementation

Answer 1

Answer: The primary benefit of activity-based costing is that it uses More cost pools and therefore more accurate product costing.

Explanation: ABC costing: Is a general cost allocation system in 2 steps that establishes activity cost pools and cost drivers.