Final answer:
Activity-based costing (ABC) more accurately measures the cost of activities that are not proportional to the volume of outputs produced.
Step-by-step explanation:
Activity-based costing (ABC) differs from other costing approaches in that it more accurately measures the cost of activities that are not proportional to the volume of outputs produced. ABC allocates costs based on the activities that drive the costs, rather than simply the volume of output. For example, in a manufacturing company, setting up a machine for production or inspecting finished goods are activities that may have costs that are not directly related to the volume of output produced.