Central Nursery has decided to adopt has decided to adopt activity-based costing. One likely reason the firm's accountants decided on this approach was to
- provide a more meaningful way to assign overhead costs to specific products.
- simplify the process of assigning costs to specific products.
- base costing on the amount of direct labor used to produce each product.
- move form a system that focuses on assigning costs to goods and services to a system that assigns costs to activities.