What are three advantages of activity based costing over traditional volume based allocation methods?
| Ease of use, more accurate product costing, and more effective cost control. | |
| Fewer allocation bases, ease of use, and a direct correlation to production volume. | |
| More accurate product costing, more effective cost control, and better focus on the relevant factors for decision making. | |
| More accurate product costing, fewer cost objects, and a direct correlation to production volume. | |
| More accurate product costing, ease of use, less costly to implement. |