It Is Easier to Allocate Indirect Costs to the Products

question 258

True/False

It is easier to allocate indirect costs to the products that actually caused those costs if an ABC system is used rather than a traditional costing system.

---

Definitions:

Present Value

The contemporary valuation of a future money sum or ongoing cash flows, factoring in a defined interest rate.

Rate of Return

The percentage of profit or loss on an investment over a period.

Guaranteed Rate

A promised or assured rate of return on an investment or loan.

Special Account

An account created for a specific, often non-routine, purpose, which may involve unique transactions or conditions.