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, rath than multiple products. OD. in activity-based costing, it is cost drivers that cause costs to be incurred.

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

Related questions

Q: When absorption costing is used a. management may be tempted to overproduce in a given period in…

A: Absorption costing is a method of calculating the cost of a product or enterprise by taking into…

Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…

A: The objective of the question is to identify the false statement about activity-based costing (ABC).

Q: Which of the following statements is false? Multiple Choice Examples of selling costs include…

A: Costs incurred can be of three types;manufacturing,selling and,administrative.Where manufacturing…

Q: Which of the following statements about activity-based costing (ABC) is false? Group of answer…

A: The objective of the question is to identify the false statement about activity-based costing (ABC)…

Q: Traditional product - costing systems are structured on multiple, volume - based cost drivers. True…

A: Overhead means the amount of expenses incurred indirectly to produce the goods. These expenses…

Q: Which of the following statements are false regarding Activity-Based Costing? Select one: O A.…

A: Solution:Correct answer : (d) Activity-based Costing follows the same basic calculation methods as…

Q: Traditional Volume-based costing allocates indirect product costs based on the volume of output,…

A: Following is the answer to given question

Q: activity-based costing systems have a tendency to distort product costs. True or False?

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: Firms may choose to use absorption costing or variable costing for external financial reporting…

A: Absorption costing: Absorption costing includes all manufacturing costs, both variable and fixed, in…

Q: product-costing systems are structured on multiple volume-based cost drivers. True or False?

A: Traditional Product-costing system refers to the concept of cost allocation under which the the…

Q: activity -based costing over traditional volume -based allocation method

A: Definition: Activity Based Costing: The costing method which identifies the activities of an…

Q: TRUE OR FALSE In activity-based costing systems, costs are not classified as either direct or…

A: Answer: In activity-based costing systems, costs are not classified as either direct or indirect…

Q: A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for…

A: All values are in (P).

Q: d in the cost of the product b) that it is not really useful for managerial decisions c) that it…

A: A cost accounting system is a system of accounting that is helpful for the internal management to…

Q: t is known that a new fee will increase if the order made by the customer increases. Based on this…

A: Under ABC system, the costs are divided on the grounds of various types of cost drivers utilized.…

Q: The following statements refer to organisations that use service costing: (i) The service provided…

A: Service costing is the cost associated with providing and delivering service. There are difference…

Q: Which THREE of the following statements about activity-based costing (ABC) and traditional costing…

A: The differences between ABC (Activity-Based Costing) and traditional costing can be summarized in…

Q: Marginal costing is usually deployed when decisions about volume are being made. Discuss the…

A: Monetary Accounting has appeared with the advancement of huge scope business as business entities.…

Question

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.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Explain why service companies use different activity bases than manufacturing companies to classify costs as fixed or variable.
Activity-based costing is preferable in a system: when multiple products have similar product volumes and costs with a large direct labor cost as a percentage of the total product cost with multiple, diverse products where management needs to support an increase in sales price
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.
What advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?
How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?
Why are there objections to using absorption costing when segment reports of profitability are being prepared?
Explain how a plantwide overhead rate, using a unit-based driver, can produce distorted product costs. In your answer, identify two major factors that impair the ability of plantwide rates to assign cost accurately.
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 statements about activity-based costing (ABC) is false? Group of answer choices In activity-based costing, cost drivers are what cause costs to be incurred. 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. Activity-based costing is useful for allocating marketing and distribution costs. Activity-based costing differs from traditional costing systems in that it allocates costs according to the rates at which a product consumes different activities.
Which of the following statements about activity-based costing (ABC) is false? Group of answer choices Activity-based costing differs from traditional costing systems in that products are not cross-subsidized. 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. Activity-based costing is useful for allocating marketing and distribution costs. In activity-based costing, cost drivers are what cause costs to be incurred.
Which of the following statements about activity-based costing (ABC) is false? Group of answer choices Activity-based costing is useful for allocating marketing and distribution costs. Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only multiple products rather than single product. Activity-based costing differs from traditional costing systems in that it allocates costs according to the rates at which a product consumes different activities. In activity-based costing, all overhead costs are accumulated into a single cost pool and a single cost driver is identified to allocate costs to the cost objects.
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 business makes only one product rather than multiple products.