Question: reply to Activity-based costing is a more complex system that allocates costs to an activity rather than the products that are produced by those activities.

reply to Activity-based costing is a more complex system that allocates costs to an activity rather than the products that are produced by those activities. The advantages of this type of costing is that it provides a greater level of focus on fixed categories which enables a company to make improvements based on those areas that are cost drivers. Although, implementing such a system can be extremely time-consuming and often cost exorbitant. This method is ideal for large manufacturing companies with diverse processes and products like software development and healthcare

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