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Question 337 - IIA-CIA-Part3 discussion

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Which of the following statements is true regarding activity-based costing (ABC)?

A.
An ABC costing system is similar to conventional costing systems in how it treats the allocation of manufacturing overhead.
Answers
A.
An ABC costing system is similar to conventional costing systems in how it treats the allocation of manufacturing overhead.
B.
An ABC costing system uses a single unit-level basis to allocate overhead costs to products.
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B.
An ABC costing system uses a single unit-level basis to allocate overhead costs to products.
C.
An ABC costing system may be used with either a job order or a process cost accounting system.
Answers
C.
An ABC costing system may be used with either a job order or a process cost accounting system.
D.
The primary disadvantage of an ABC costing system is less accurate product costing.
Answers
D.
The primary disadvantage of an ABC costing system is less accurate product costing.
Suggested answer: C
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asked 18/09/2024
Alexander Voronetsky
42 questions
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