Asked by lizzy rybarczyk on May 18, 2024
Verified
Activity-based costing is best proposed, designed and implemented by the accounting department without requiring the time of busy managers.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities based on their use of resources.
Accounting Department
A division within a company that is responsible for managing financial records, ensuring compliance with accounting laws, and preparing financial reports.
- Understand the significance of engaging managers and departments in the process of implementing ABC.
Verified Answer
EB
Ethan BrunetMay 23, 2024
Final Answer :
False
Explanation :
Activity-based costing requires input and participation from various departments and managers, as it involves identifying and analyzing specific activities and costs associated with each department's operations. Therefore, it cannot be solely designed and implemented by the accounting department.
Learning Objectives
- Understand the significance of engaging managers and departments in the process of implementing ABC.
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