Economics · Activity Based Costing
Which of the following is NOT a key characteristic of Activity-Based Costing (ABC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It can be used to improve pricing and product mix decisions.
- 2It helps in understanding the real cost of products and services.
- 3It focuses on identifying and assigning costs to activities.
- 4It emphasizes direct labor hours as the primary cost driver.✓
Correct answer
It emphasizes direct labor hours as the primary cost driver.
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