Which of the following statements is true of activity-based costing?O a.ABC ignores the allocation of storage costs.O b. Activities are the cost objects of the second stage of ABC.Ос.An activity cost pool collects costs related to the same activity.O d. ABC is more likely to result in big differences from a traditional costing system if the businessmakes only one product rather than multiple products.

Activity based costing represents the costing method where the company identifies the cost pools and…

Which of the following statements is true of activity-based costing? O a. ABC ignores the allocation of storage costs. Ob. Activities are the cost objects of the second stage of ABC. O c. An activity cost pool collects costs related to the same activity. O d. 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? O a. ABC ignores the allocation of storage costs. Ob. Activities are the cost objects of the second stage of ABC. O c. An activity cost pool collects costs related to the same activity. O d. 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

See similar textbooks

Similar questions

Which of the following is a reason a company would implement activity-based costing? A. The cost of record keeping is high. B. The additional data obtained through traditional allocation are not worth the cost. C. They want to improve the data on which decisions are made. D. A company only has one cost driver.
When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products?
Explain why service companies use different activity bases than manufacturing companies to classify costs as fixed or variable.
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead
Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost systems. B) ABC systems classify some direct costs as indirect costs and some indirect costs as direct costs. C) ABC systems provide valuable information to managers beyond accurate product costs. D) ABC systems assume all costs are variable costs.
Which of the following statements about activity-based costing is not true? A. activity-based costing is useful for allocating distribution costs. B. activity-based costing is useful for allocating marketing costs. C. activity-based costing is more likely to result in major differences from traditional costing systems for firms that produce just one product, rath than multiple products. OD. in activity-based costing, it is cost drivers that cause costs to be incurred.
Which of the following statements about activity-based costing is not true?A. activity-based costing is useful for allocating distribution costs.B. activity-based costing is useful for allocating marketing costs. C. activity-based costing is more likely to result in major differences from traditional costing systems for firms that produce just one product, rather than multiple products.D. in activity-based costing, it is cost drivers that cause costs to be incurred.
Which of the following is false about activity-based costing? Implementing an activity-based costing system is more costly than implementing a traditional cost allocation system. In ABC, the assumption is that activities use resources or cause costs. An activity-based costing system relies only on volume measures such as direct labor hours to allocate all overhead costs to products. A traditional cost allocation system and an activity-based costing system are used to estimate the profitability of products.
Which of the following statements regarding activity-based costing (ABC) is false? A. ABC is not an appropriate tool for analysing non-manufacturing costs. B. ABC can be used to analyse the profitability of customers. C. ABC evolved as a response to problems with traditional costing systems. D. ABC can be used to measure the cost of cost objects.
Which of the following statements is true? O a. Activity-based costs per unit are always greater than volume-based costs per unit. O b. All the statements are false. O c. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. O d. Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O e. Volume-based costing has typically resulted in overcost for high-volume products and undercost for low-volume products. 11:40 ere to search A D a dx ENG 22-05-2021 hp delete home end an Ed 96 & 7\ 6. + backspace mum lock RO 7 V home g up K enter 50 pause B t shift 2Y end alt ctrl ins
?Which of the following is not a step involved in activity-based costing Assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by a O .the product .Determine how to reduce the costs of making products by cutting activities .b O Identify the activities that consume resources and assign costs to those activities c O .Compute a cost rate per cost driver unit or transaction .d O