Question: Activity-based costing (ABC) is increasingly popular as a useful managerial tool to
(1) measure the cost of resources consumed and
(2) assign cost to products and services.
This managerial tool has been available to accounting and business decision makers for more than 25 years.
Required: Break into teams and identify at least three likely reasons that activity-based costing has gained popularity in recent years. Be prepared to present your answers in a class discussion. What changes have occurred in products and services over the past 25 years?