Reference no: EM132598722

Question 1: How is activity-based costing useful for pricing decisions?

A. ABC is useful for managers to focus on locked-in costs, that, if eliminated would not reduce the actual value or utility customers gain from using the product or service.

B. Managers can make better pricing decisions based on more accurate product-cost information

C. ABC focuses only on product-sustaining costs, so managers can estimate easily the impact of product costs on prices.

D. ABC focuses only on unit-level costs, so managers can estimate easily the impact of unit costs on prices.

E. ABC is useful for value engineering, not pricing.