CIMA Management Accounting P1 Question # 65 Topic 7 Discussion

CIMA Management Accounting P1 Question # 65 Topic 7 Discussion

P1 Exam Topic 7 Question 65 Discussion:
Question #: 65
Topic #: 7

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.


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