Activity-based costing (ABC) can eliminate cost distortions ...

[stephzh]

Question 1

Activity based costing system differs from traditional costing systems in the treatment of ________.
◦ direct labor costs
◦ direct material costs
◦ prime costs
◦ indirect costs

Question 2

Activity-based costing (ABC) can eliminate cost distortions because ABC systems ________.
◦ establish a cause-and-effect relationship with the activities performed
◦ use single cost pool for all overhead costs, thereby enabling simplicity
◦ use a broad average to allocate all overhead costs
◦ never consider interactions between different departments in assigning support costs

[Briannahope]

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[stephzh]

Wow, this really help

[Alyson.hiatt@yahoo.com]

Thanks for the timely response, appreciate it