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Author Question: Activity-based costing (ABC) can eliminate cost distortions because ABC systems ________. (Read 23 times)

stephzh

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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


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Marked as best answer by stephzh on Mar 6, 2021

Briannahope

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stephzh

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Reply 2 on: Mar 6, 2021
Excellent


ryhom

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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