Question
Which of the following best explains the main advantages of time-driven-activity-based costing for services over the use of conventional ABC? a. The number of services
Which of the following best explains the main advantages of time-driven-activity-based costing for services over the use of conventional ABC?
| a. The number of services can more easily be expanded than under conventional ABC, since costs are assigned to unused capacity. | ||
| B. Theoretical capacity, used in this type of costing, allows service companies a better method to assess quality control than does conventional ABC. | ||
| C. Time-based resource and activity data is easy to collect and practical capacity is used by time-driven-activity-based costing. | ||
| D. The number of line items on a services bill is minimized and practical capacity is used by time-driven-activity-based costing. | ||
| e. This type of costing allows service companies better information since their objectives when using ABC are different than those of manufacturing firms. |
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