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Author Question: Activity-based costing (ABC) can eliminate cost distortions because ABC systems ________. (Read 59 times)

stephzh

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on: Mar 6, 2021

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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by stephzh on Mar 6, 2021

Briannahope

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Reply #1 on: Mar 6, 2021
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stephzh

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Reply 2 on: Mar 6, 2021
Excellent

lindahyatt42

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Reply 3 on: Yesterday
Wow, this really help

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