Which of the Following Statements Is TRUE Regarding Activity-Based Costing

question 62

Multiple Choice

Which of the following statements is TRUE regarding activity-based costing systems?

• A) ABC systems accumulate overhead costs by departments.
• B) ABC costing systems are less complex and, therefore, less costly than traditional systems.
• C) ABC costing systems can be used in manufacturing firms only.
• D) ABC costing systems have separate indirect cost allocation rates for each activity.

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Definitions:

Stepwise

Involves processes or reactions occurring in a sequential manner, one step at a time.

Major Organic Product

The primary product of a chemical reaction, typically in higher yield compared to any side products.

Provided

A term used to indicate that something is supplied or made available to someone or for some process.

Expected Product

The Expected Product is the chemical entity anticipated to result from a specific reaction under defined conditions.