Homework Help is Here – Start Your Trial Now!
Business
Accounting
Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs . b. In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours. c. Activity based costs are the same as relevant costs for the purpose of short-run decision-making. d. Activity based costing is a form of absorption costing

Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs . b. In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours. c. Activity based costs are the same as relevant costs for the purpose of short-run decision-making. d. Activity based costing is a form of absorption costing

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
answer quickly
Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs .b. In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours. c. Activity based costs are the same as relevant costs for the purpose of short-run decision-making. d. Activity based costing is a form of absorption costing
Transcribed Image Text:Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation of ABC is unlikely to be cost effective when variable production costs are a low proportion of total production costs .b. In a system of ABC, for costs that vary with production levels, the most suitable cost driver is likely to be direct labour hours or machine hours. c. Activity based costs are the same as relevant costs for the purpose of short-run decision-making. d. Activity based costing is a form of absorption costing
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS