Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

With activity-based costing, the goal is to:_______
A. Develop a product cost that captures the amount of each resource consumed by the activities performed to produce a specific product.
B. Develop a product cost that allocates manufacturing overhead to each resource consumed by the activities performed to a group of similar products.
C. Develop a product cost that eliminates all waste such as machine down time and defective products.
D. None of the above.

Sagot :

Lanuel

Answer:

A. Develop a product cost that captures the amount of each resource consumed by the activities performed to produce a specific product.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

In Financial accounting, one of the most widely used activity-based costing technique is the time-driven activity-based costing.

Time-driven activity-based costing (TDABC) avails business owners the opportunity of reporting their costs on an ongoing basis (real time) which give details about the various cost of doing business, as well as the time spent on them respectively.

This ultimately implies that, TDABC gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the TDABC, the relationship between time and cost measurement is used to determine the cost price of goods and services.

Time-driven activity-based costing (TDABC) does not assume employees will self-report idle time but it overcomes some important limitations of activity-based costing (ABC) because it can be used by both the employees and their employers.

Hence, with activity-based costing (ABC), the goal is to develop a product cost that captures the amount of each resource consumed by the activities performed to produce a specific product.

Additionally, activity-based costing (ABC) reduces product undercosting or overcosting.

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.