Time-driven ABC requires estimates of onl
Which of the following statements about time-driven activity-based costing is true?
Time-driven ABC requires estimates of only two items, namely: the cost per time unit of supplying resource capacity, and unit times of consumption of resource capacity by products, services or customers
Time-driven ABC is a simplification of traditional ABC. Due to this simplification, time-driven ABC is unable to adequately capture the complexity of real world operations
With time-driven ABC, managers assign resource costs to each activity and then to products or customers rather than directly estimating the resource demands required by each product
Survey evidence has revealed that ABC adoption rates are fairly low due to oversimplification and perceived inaccuracies. As a result, a more complex approach called time-driven ABC was implemented in order to overcome the perceived inaccuracies
None of the available statements are true
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