Which of the following statements are true? I. Activity-based costing differs from traditional costing systems in that products are NOT cross-subsidized. II. Activity-based costing is more likely to result in major difference from traditional costing systems if the firm make only one product rather than multiple products. III. Activity-based costing uses batch-level, product sustaining-level, and facility-sustaining costs to help assign overhead to products. IV. Activity-based costing is useful for allocating marketing and distribution costs also. Question 8 options: a) II and III are true. b) I, III, and IV are true. c) I and IV are true. d) All of the statements are true.
Which of the following statements are true? I. Activity-based costing differs from traditional costing systems in that products are NOT cross-subsidized. II. Activity-based costing is more likely to result in major difference from traditional costing systems if the firm make only one product rather than multiple products. III. Activity-based costing uses batch-level, product sustaining-level, and facility-sustaining costs to help assign overhead to products. IV. Activity-based costing is useful for allocating marketing and distribution costs also. Question 8 options: a) II and III are true. b) I, III, and IV are true. c) I and IV are true. d) All of the statements are true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Which of the following statements are true?
I. Activity-based costing differs from traditional costing systems in that products are NOT cross-subsidized.
II. Activity-based costing is more likely to result in major difference from traditional costing systems if the firm make only one product rather than multiple products.
III. Activity-based costing uses batch-level, product sustaining-level, and facility-sustaining costs to help assign overhead to products.
IV. Activity-based costing is useful for allocating marketing and distribution costs also.
Question 8 options:
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