An advantage of ABC costing is: can be used to identify activities that can benefit from process improvement

 
An advantage of ABC costing is:

multiple choice

    can be used to identify activities that can benefit from process improvement Correct
    less effective overhead cost control
    increased costing
    can be used for external financial reporting

Explanation

Knowledge Check 01

The two advantages of using ABC are that it can be used to identify activities that can benefit from process improvement and it provides more accurate overhead cost allocation. The disadvantages include that it is costly, the product costs can be distorted and it is not compliant for external financial reporting under GAAP.