Which of the Following Statements Is True of Activity-Based Costing

question 142

Multiple Choice

Which of the following statements is true of activity-based costing?

• A) In activity-based costing, direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs.
• B) Activity based costing is more suited to companies with high product diversity than companies with single product line.
• C) Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.
• D) The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs to the products.

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Definitions:

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PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

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