Certified Professional Category Analyst (CPCA) Practice Exam 2025 - Free CPCA Exam Practice Questions and Study Guide

The statement is false because activity-based costing (ABC) and assortment management serve different purposes and are not interchangeable concepts. Activity-based costing is a managerial accounting method that assigns costs to products and services based on the resources they consume, providing insights into the true cost of production. This approach aids organizations in making well-informed pricing decisions, improving profitability, and identifying cost-saving opportunities.

On the other hand, assortment management involves determining the optimal range of products to offer in a retail setting, focusing on what mix of items can best meet customer demand and increase sales. Assortment management is more about product positioning, variety, and consumer preferences rather than the precise costing of products.

This distinction highlights that while both methods may influence pricing strategies, they are grounded in different analytical frameworks. Thus, the assertion that activity-based costing is an advanced pricing model conflates two distinct concepts, making the statement false.