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

2 The overhead absorption rate OAR is calculated in the. ABC ignores the allocation of storage costs.

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D-is the correct answer I mean Activity -Based Costing can be used with either process or job costing.

. 2 The overhead absorption rate OAR is calculated in the. Activity-Based Costing assumes that most overhead costs can be easily allocated based on one or two drivers. Answer D is the correct option with either.

Activity-based costing uses a single rate to allocate overhead. With either process or job costing. B Activity based costing is more suited to companies with high product diversity than companies with single product line.

Activity based costing broadly. 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. O The main advantage of activitybased costing over peanutbutter costing is the accurate distribution of all direct costs to the products.

Activity-based costing differs from traditional costing systems in that products are not cross-subsidized. 4 Which of the following statements is true of activity-based costing. Activity-based management eliminates waste by allocating costs to products that waste resources.

Correct - Your answer is correct. It is based on the concept that a single cost driver can drive all overhead costs. In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs.

Answer a is incorrect because. The following statements have been made in relation to activity-based 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. 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. 1 A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated.

Process costing is a process that is used by an entity to evaluate the production costs for an individual unit of product. Activity-based costing differs from traditional costing systems in that products are not cross-subsidized. Under Activity-Based Costing it is important for there to be a high correlation between the change in the level of costs and the change in the use of the driver on which those costs are allocated.

In activity-based costing cost drivers are what cause costs to be incurred. The reason for this is that the activity based costing provides a more precise or accurate indirect cost breakdown. It can be used with either process or job costing.

Activity-Based Costing is based on a deep understanding of the activities that a company engages in while pursuing economic objectives. ABC classifies some indirect costs as direct costs. O Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.

1 A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. A In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs. A In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs B The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs.

Activity-based costing can be used in. An activity cost pool collects costs related to the same activity. Which of the following statements is true of activitybased costing.

C Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or. ABC ignores the allocation of marketing costs. Wrong - Your answer is wrong.

Activity based costing provides more accurate information than traditional costing. It is based on the concept that unit-level costs drive all overhead costs. Activity rates in activity-based costing are computed by dividing costs from the first-stage allocations.

Which of the following statements is true regarding activity based costing ABC. Activity based costing is more suited to companies with high product diversity than companies with single product line. A In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs.

D to all types of inventory. The following statements have been made in relation to activity-based costing. Activity-based costing is designed to allocate the costs of production.

An activity-based costing system is generally easier to implement and maintain than a traditional costing system. Accounting questions and answers. It also takes other important factors into account before allocating a cost to a given product.

C Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or. E from indirect cost pools to distinct types of outputs. B Activity based costing is more suited to companies with high product diversity than companies with single product line.

It is based on the concept that activities drive overhead costs. Activity-based costing is likely to result in major differences when the firm manufactures multiple products. Which of the following statements is true of activity-based costing.

True or false false Activity-Based Costing presumes that all costs are static regardless of the level of activity or production and seeks. B from direct cost pools to distinct types of outputs. 16 Activity-based costing is a technique to improve the reliability of cost assignment A to work-in-process inventory.

Activity-based costing is useful for allocating marketing and distribution costs. D Activity-based costing can be used in conjunction. The cost driver for quality inspection is likely to be batch size.

C from both direct and indirect cost pools to distinct types of outputs. B Activity based costing is more suited to companies with high product diversity than companies with single product line. Correct answer is d.

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. 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. Which of the following statements is true of activity-based costing.

Cost drivers are supposed to be selected that cause costs to be incurred.

Activity Based Costing Abc Vs Traditional Costing Traditional Activities Cost

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