Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 13 - Pricing Decisions and Cost Management - Assignment Material - Questions - Page 540: 13-4

Answer

Activity-Based Costing (ABC) is useful for pricing decisions because it reveals the true cost of products and services by tracing costs to specific activities. This helps in setting competitive prices, evaluating product profitability, and making informed pricing decisions.

Work Step by Step

Activity-Based Costing (ABC) is useful for pricing decisions because it reveals the true cost of products and services by tracing costs to specific activities. This helps in setting competitive prices, evaluating product profitability, and making informed pricing decisions.
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