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

Examples of activities at the plant level of costs include. Which of the following statements are true regarding Activity-Based Costing.

Pin On Business Partner

Activity-based costing differs from traditional costing systems in that products are not cross-subsidized.

. Which of the following statements is true. Activity-based costing is useful for allocating marketing and distribution costs. Activity-based costing differs from traditional costing systems in that products are not cross-subsidized.

The reason for this is that the activity based costing provides a more precise or accurate indirect cost breakdown. Accounting questions and answers. Activity based costing provides more accurate information than traditional costing.

An activity-based costing system is generally easier to implement and maintain than a traditional costing system. Activity-based costing is useful for allocating marketing and distribution costs. Costs are allocated based on a pre-determined overhead rate for each cost pool.

ABC ignores the allocation of marketing costs. Which of the following statements is true of activity-based costing. Activity-based costing improves control over overhead costs setting up equipment is a batch-level activity in activity-based costing each cost pool has its predetermined overhead rate and activity-based costing is less expensive to implement than traditional costing.

Activity-based costing ABC system assigns overheads to each activity other than cost centres. In activity-based costing cost drivers are what cause costs to be incurred. Activity-based management eliminates waste by allocating costs to products that waste resources.

An activity cost pool collects costs related to the same activity. ABC costing systems have separate indirect cost allocation rates for each activity. C Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or.

Heating lighting and security B. 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. In an activity-based costing system costs are assigned directly to cost objects and hence are more accurate.

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 considers ________ to be the fundamental cost object. Correct - Your answer is correct.

Which of the following statements is true regarding activity based costing ABC. It is based on the concept that a single cost driver can drive all overhead costs. 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.

It is based on the concept that activities drive overhead costs. Direct materials and direct labor are applied to work-in-process based upon cost drivers. It is based on the concept that unit-level costs drive all overhead costs.

Many different activity bases are used in applying overhead. Which of the following statements is true of an activity-based costing ABC system. C Activity-based costing classifies some of the indirect costs as direct costs.

In an activity-based costing system costs are first assigned to. A peanut-butter costing system allocates costs based on the overall level of activity. It allows the establishment of many ABC cost centres otherwise known as cost pools to which overhead.

Activity-based management eliminates waste by allocating costs to products that waste resources. 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 an ABC system.

Activity-based costing uses a single rate to allocate overhead. Activity-based costing is useful for allocating distribution costsB. 4 Which of the following statements is true of activity-based costing.

B 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. There can only be one cost driver. Which of the following statements is true about activity-based costing.

An activity cost pool in activity-based costing is a cost bucket in which costs related to a particular activity measure are accumulated. ABC classifies some indirect costs as direct costs. B Activity based costing is more suited to companies with high product diversity than companies with single product line.

Only one activity should be used for a company. A Activity-based costing is useful for allocating marketing and distribution costs b 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 c Activity-based costing seeks to distinguish batch-level product sustaining and facility-sustaining costs especially when they. D Chances of product-cost cross-subsidization are higher in activity-based costing compared to traditional costing systems.

Cutting painting and packaging C. It also takes other important factors into account before allocating a cost to a given product. Activity-based costing is useful for allocating marketing costs.

A In activity-based costing direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs. ABC ignores the allocation of storage costs. Which of the following statements is true of activity-based costing.

Activity rates in activity-based costing are computed by dividing costs from the first-stage allocations. The answer is Activity based costing is more suited to companies with high product diversity than companies with single product line. An ABC system will use a single cost pool for identical overhead costs.

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. An activity-based costing system focuses only on directly tracing the cost factors to the units produced. Which of the following statements about activity-based costing is not trueA.

Which of the following statements is TRUE regarding activity-based costing systems. Designing changing and advertising D. Non-manufacturing costs are not important to include when calculating the cost of each product.

It is based on the concept that either the number of direct labor or machine. In activity-based costing each major activity has its own overhead cost pool its own activity measure and its own overhead rate. Transitioning from traditional costing methods.

Activity-based costing is more likely to result in major differences from traditional costing systems for firms that produce just. B Activity based costing is more suited to companies with high product diversity than companies with single product line. 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.

Pin On Flevy Marketplace For Premium Business Documents