Why would a company choose to use activity based costing vs the single department method or the multiple department method?

Q: Why is ABC usually considered more accurate than traditional costing methods?

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

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 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: What is different than traditional costing that uses a volume-based driver? Can you give me some…

A: There are many different types of costing methods, out of which the selection of costing method to…

Q: Why would someone use variable costing over absorption Costing ?

A: The variable costing method is the method that only includes the variable costing whereas,…

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: What system would a manufacturer of unique special orders or batch processes most likely use to…

A: Cost accounting is very important area of accounting, which helps in accounting of various types and…

Q: Which costing method is used when the products are indistinguishable from each other? A. Job order…

A: The question is asking us to identify the costing method that is used when the products being…

Q: Why might two different companies in the same industry have different cost systems?

A: A cost system, sometimes referred to as a cost accounting system, is an organized method or series…

Q: Please explain the statement below (T/F) thoroughly with examples illustrating the answer.  "In…

A: in Activity-based costing many numbers of cost pools. In activity-based costing, a product margin…

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: 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: What is time-driven activity based management (TDABC)

A: TDABC stands for time-driven activity-based costing. It is a costing method based on activity and…

Q: How can variable costing be used in service companies?

A: Variable Costing: The variable costing is the method of costing in which only the variable…

Q: Why would a business that uses traditional costing systems consider implementing activity-based…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: Activity Based Costing (ABC) is an alternative method for allocating costs to products by…

A: Activity based costing is also known as ABC COSTING . Traditional costing applies an predetermined…

Q: Why might a company choose a process costing system over a job order costing system? How are the two…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: What reasons is product cost information needed, job order cost system and process cost system?

A: The Answer is here:

Q: Discuss how traditional methods of allocating overhead to products may not provide a good measure of…

A: The overhead costs are allocated to production using various methods as traditional costing and…

Q: In Traditional product costing systems, the measure of product activity is usually some volume based…

A: Lets understand the basics. There are two costing system are followed which are, (1) Traditional…