contestada

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

ABC ignores the allocation of storage costs.

An activity cost pool collects costs related to the same activity.

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.

Activities are the cost objects of the second stage of ABC.

ABC uses a single overhead rate.

Respuesta :

Answer:

Option B (An activity....................same activity) would be the correct choice.

Explanation:

  • ABC would be used by companies since there would be a variety of resources consumed. Throughout ABC, that each expense is identified as well as identified to something like the operation.
  • A predetermined overhead price wasn't used so rather than using numerous geographical expense driver amounts.

Only certain costs are defined in the sense of various activities as well as averaged to create each activity cost collection. That is why the above is indeed the correct answer.

Otras preguntas