A primary reason for a company to change from traditional costing to activity-based costing (ABC) is that ABC: A. Is a simpler costing method to use.
B. Identifies the nonvalue-added costs of production.
C. Reduces product undercosting or overcosting.
D. Eliminates indirect cost application to products.

C. Reduces product undercosting or overcosting.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

A primary reason for a company to change from traditional costing to activity-based costing (ABC) is that ABC reduces product undercosting or overcosting. One of the most widely used activity-based costing technique is the time-driven activity-based costing.

Time-driven activity-based costing (TDABC) avails business owners the opportunity of reporting their costs on an ongoing basis (real time) which give details about the various cost of doing business, as well as the time spent on them respectively.

This ultimately implies that, TDABC gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the TDABC, the relationship between time and cost measurement is used to determine the cost price of goods and services.

Time-driven activity-based costing (TDABC) does not assume employees will self-report idle time but it overcomes some important limitations of activity-based costing (ABC) because it can be used by both the employees and their employers.

answer; descriptive statistics;

answer; ///product strategy;