Which of the following statements is true regarding activity-based costing (ABC)

Question

Which of the following statements is true regarding activity-based costing (ABC) and cost-volume-profit (CVP) analysis? A. CVP analysis is not as useful in decision making in an ABC environment as compared to a traditional costing environment. B. Product-level and batch-level costs are included in the numerator of the equation to compute break-even in an ABC environment C. Fixed costs are included in the denominator of the equation to compute break-even in an ABC environment. D. Unit-level costs are not taken into account when computing the break-even point in an ABC environment.

Explanation / Answer

d

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