Because Activity-Based Costing Considers the Resources Each Product Actually Uses,it

question 236

Multiple Choice

Because Activity-Based Costing considers the resources each product actually uses,it

• A) results in product costs being calculated more accurately.
• B) computes allocation rates based primarily on direct labor rates.
• C) ultimately calculates a single plantwide allocation rate.
• D) can only be used in companies which have process costing.