There Are Several Advantages to Using Activity-Based Costing

question 32

Multiple Choice

There are several advantages to using activity-based costing.Which of the following is one of these advantages?

• A)Services not performed in a department are allocated a portion of the cost of operating that department.
• B)Each department can choose the activity base that relates best to its cost.
• C)Simplified costing is time-consuming and expensive to administer.
• D)Activity-based rates are much less time-consuming to prepare.