Which statement is FALSE? Activity-Based Costing includes non-manufacturing costs in product costs, so the inventory in the balance sheet will be higher under ABC than under traditional costing. Job costing does not consider non-manufacturing costs when recording product costs Activity-Based Costing can improve the accuracy of product cost in a Job Costing setting more than in process costing. None of above Increasing the number of indirect cost pools under ABC does not necessarily increase the accuracy of product costs.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which statement is false and why?
Correct Answer
You Answered
Which statement is FALSE?
O
Activity-Based Costing includes non-manufacturing costs in product costs, so the
inventory in the balance sheet will be higher under ABC than under traditional costing.
Job costing does not consider non-manufacturing costs when recording product costs
Activity-Based Costing can improve the accuracy of product cost in a Job Costing setting
more than in process costing.
O None of above
Increasing the number of indirect cost pools under ABC does not necessarily increase
the accuracy of product costs.
Transcribed Image Text:Which statement is false and why? Correct Answer You Answered Which statement is FALSE? O Activity-Based Costing includes non-manufacturing costs in product costs, so the inventory in the balance sheet will be higher under ABC than under traditional costing. Job costing does not consider non-manufacturing costs when recording product costs Activity-Based Costing can improve the accuracy of product cost in a Job Costing setting more than in process costing. O None of above Increasing the number of indirect cost pools under ABC does not necessarily increase the accuracy of product costs.
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