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Which THREE of the following are advantages of activity-based costing (ABC), in a multi-product environment,...

Which THREE of the following are advantages of activity-based costing (ABC), in a multi-product environment, when compared with traditional absorption costing?

A.

ABC provides a better understanding of overhead costs.

B.

ABC provides more accurate product costs in a complex business environment.

C.

ABC is cheaper to operate.

D.

ABC results in increased unit profit for each product.

E.

ABC leads to better product pricing decisions.

CIMA P1 Summary

  • Vendor: CIMA
  • Product: P1
  • Update on: Jul 29, 2025
  • Questions: 260
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