Consider a Situation Where an Activity-Based Costing System Is in Use

question 10

Multiple Choice

Consider a situation where an activity-based costing system is in use rather than a traditional volume-based costing system. Which of the following statements is/are true?

• A) The use of activity-based costing eliminates the need to consider qualitative factors.
• B) When an activity-based costing system is used, facility level costs will have to be analysed differently to the way they would be under a traditional volume-based costing system.
• C) When an activity-based costing system is used, unit level costs will have to be analysed differently to the way they would be under a traditional volume-based costing system.
• D) None of the given answers

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