Respuesta :
The three major ways in which activity-based costing improves the accuracy of product costs are
- Activity based costing
- Activity cost Pool
- Activity based costing
Step 1
Activity based costing is a system in which costs are allocated to the products on the basis of activities. Some cost drivers needs to be defined so that cost can be allocated properly.
Step 2
Activity-based costing improves the accuracy of product costs in three ways. First, activity-based costing increases the number of cost pools used to accumulate overhead costs. Rather than accumulating all overhead costs in a single, plantwide pool, or accumulating them in departmental pools, costs are accumulated for each major activity.
Step 3
second, the activity price pools are extra homogeneous than departmental value pools. In principle, all the fees in an interest price pool pertain to a single activity. In assessment, departmental price pools contain the costs of many different activities finished inside the department.
third, activity-based costing changes the bases used to assign overhead prices to products. in preference to assigning prices on the basis of direct labor or a few different measure of extent, costs are assigned on the idea of interest measures that gauge how much of the overhead resource has been consumed through a particular activity.
Learn more about Activity based costing https://brainly.com/question/24009922
#SPJ4
