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How is activity based costing useful for pricing decisions

Question - How is activity based costing useful for pricing decisions?

Criteria: Your answer to the topic should be in your own words (not from an instructor's solution manual). You may want to provide additional information from outside readings or other outside resources, if so, please provide your source or reference.

Reference: Horngren, C. T., Datar, S.M., Foster, G., Rajan, M., & Ittner, C. (2009). Cost Accounting: A Managerial Emphasis (13th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

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