Economics · Cost Accounting
Assertion (A): Activity Based Costing (ABC) provides more accurate product costing compared to traditional costing methods. Reason (R): ABC allocates overhead costs to products based on activities that drive costs rather than using a single overhead absorption base.
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- 1Both (A) and (R) are true and (R) is the correct explanation of (A)✓
- 2Both (A) and (R) are true but (R) is not the correct explanation of (A)
- 3(A) is true but (R) is false
- 4(A) is false but (R) is true
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Both (A) and (R) are true and (R) is the correct explanation of (A)
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