How is activity-based costing useful for pricing decisions?

A.Activity-based costing helps customers influence price through their effect on the demand for a product or service. Companies must always examine pricing decisions through the eyes of their customers and then manage costs to earn a profit.

B.Because of activity-based costing, companies are aware of the actions of their competitors.

CActivity-based costing gives managers more accurate product-cost information for making pricing decisions. It also helps managers to manage costs during value engineering by identifying the cost impact of eliminating, reducing, or changing various activities

D.Activity-based costing influences prices because costs affect supply. The lower the cost of producing a product, the greater the quantity of product the company is willing to supply