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Author Question: Which of the following is true with activity based cost accounting? (Read 25 times)

BRWH

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on: Mar 6, 2021

Question 1

When "available time" (i.e., setup-hours) is used to calculate a cost of a resource and to allocate costs to cost objects , the system is called:
◦ job costing
◦ process costing
◦ hybrid costing
◦ time-driven activity based costing

Question 2

Which of the following is true with activity based cost accounting?
◦ Activity-based costing ignores the allocation of marketing and distribution costs.
◦ Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.
◦ The focus is on activities that account for a sizable fraction of indirect costs .
◦ Chances of product-cost cross-subsidization are higher in activity-based costing compared to traditional costing systems.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by BRWH on Mar 6, 2021

ngr69

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Reply #1 on: Mar 6, 2021
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BRWH

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

tandmlomax84

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

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