Which of the Following Statements Is True of Activity-based Costing

Activity based costing provides more accurate information than traditional costing. Direct materials and direct labor are applied to work-in-process based upon cost drivers.

Activity Based Costing Abc Vs Traditional Costing Traditional Activities Abc

Costs that are indirect to products are by definition traceable directly to products.

. Activity-based costing differs from traditional costing systems in that products are not cross-subsidized. Statements I and III are true. ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products.

Traditional absorption costing tends to under-allocate overhead costs to low-volume products 2. Correct answer is d. Which of the following statements is true of activity-based costing.

2 The overhead absorption rate OAR is calculated in the. C Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or. 2 The overhead absorption rate OAR is calculated in the.

ABC is more likely to result in big differences from a traditional costing system if the business makes only one product rather than multiple products. Answer a is incorrect because. B Activity based costing is more suited to companies with high product diversity than companies with single product line.

The following statements have been made in relation to activity-based costing. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products. B Traditional costing treats only unit level costs as variable while ABC systems treat unit.

A Traditional costing uses only production volume based drivers while activity based costing uses only non production volume based drivers. 1 A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. Statements I II and III are true.

All of the statements are true. The reason for this is that the activity based costing provides a more precise or accurate indirect cost breakdown. Customer diversity requires multiple drivers to trace costs accurately to customers.

ABC ignores the allocation of storage costs. It seldom produces changes in the companys customer mix. Activities are the cost objects of the second stage of ABC.

User qa_get_logged_in_handle sort which of the following statements is true with regard to activity-based costing rates. D-is the correct answer I mean Activity -Based Costing can be used with either process or job costing. D Activity-based costing can be used in conjunction.

In activity-based costing cost drivers are what cause costs to be incurred. A Statement 1 only B Statement 2 only C Statements 1 and 2 D Neither statement. Activity-based costing is useful for allocating marketing and distribution costs.

MSQ-12 ACTIVITY-BASED COSTING Page 1 of 10 THEORY 1. Activity-based costing can be used in. Activity-based costing is useful for allocating marketing and distribution costs.

It never improves profitability. 1 A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. Wrong - Your answer is wrong.

It can be used with either process or job costing. Only one activity should be used for a company. Which of the following is a true statement about activity-based customer costing.

The cost driver for quality inspection is likely to be batch size. There can only be one cost driver. 2 Which if the following statements about Activity Based Costing isare true.

It also takes other important factors into account before allocating a cost to a given product. ABC ignores the allocation of storage costs. Cost drivers are supposed to be selected that cause costs to be incurred.

Customers consume customer-driven activities in the same proportions. A In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs. With either process or job costing.

A In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs. Which of the following statements is true of activity-based costing. Answer added by Saidul Alam Accountant Akhtar Al Balushi Trad.

B Activity based costing is more suited to companies with high product diversity than companies with single product line. Activity-based costing is designed to allocate the costs of production. Many different activity bases are used in applying overhead.

A cost driver is any factor that causes a change in the cost of an activity. The challenge in designing an activity-based costing system is to identify all of the activities that explain the variation in overhead costs. Which of the following statements about activity-based costing is not true.

C Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or. The following statements have been made in relation to activity-based costing. The traditional approach to costing uses many different cost drivers.

Costs that are indirect to products are traceable to some activity. Statements II and III are true. Activity-based costing differs from traditional costing systems in that products are not cross-subsidized.

An activity cost pool collects costs related to the same activity. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products. Which of the following statements is true.

Which of the following statements is true with. Correct - Your answer is correct. Activity-based costing seeks to distinguish batch-level product-sustaining and facility-sustaining costs especially when they are not proportionate to one another Activity-based costing is more.

Activity-based costing is likely to result in major differences when the firm manufactures multiple products.

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Unit 5 Activity Based Costing Study Objectives Recognize The Difference Between Traditional Costing And Act Cost Accounting Powerpoint Presentation Education