Which of the following statements is true Activity based costing can only be used in manufacturing companies a O Activity based costing (ABC) cannot be used for external reporting bO A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its cO .costs for external reporting None of the given answers is correct d O Traditional costing cannot be used for internal reporting e O

Which of the following statements is true Activity based costing can only be used in manufacturing companies a O Activity based costing (ABC) cannot be used for external reporting bO A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its cO .costs for external reporting None of the given answers is correct d O Traditional costing cannot be used for internal reporting e O

Name: ?Which of the following statements is trueActivity based costing can
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ?Which of the following statements is trueActivity based costing can only be used in manufacturing companiesActivity based costing (ABC) cannot be used for external reporting b OA company can either choose Activity-based costing (ABC) or the traditi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following statements is true? a. Activity based costing can be used in service companies b. None of the given answers is correct. O c. Activity based costing (ABC) can be used for external reporting. d. Traditional costing cannot be used for internal reporting. O e. A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its costs for external reporting. е.
Under which costing system non-manufacturing costs may be included in ?calculating product costs „Activity based costing system only a None of the given answers .b „Absorption costing and Variable costing systems .c Absorption costing system only .d Variable costing system only .e
Which THREE of the following statements about activity-based costing (ABC) and traditional costing systems (absorption costing and marginal costing) are correct? OABC is better than absorption costing in understanding what causes costs to be incurred Both ABC and marginal costing treat all fixed costs as product costs No over-absorption or under-absorption of overheads can occur under ABC Marginal costing understates the true cost of a product when compared to ABC ABC is not suitable for use in businesses that provide services OABC is useful for businesses which have high overheads in their cost structure
Which of the following statements are false regarding Activity-Based Costing? Select one: A. Non-manufacturing costs are not necessary to include when calculating the profitability of each product. B. Costs are allocated based on a pre-determined overhead rate. C. Transitioning from traditional costing methods to Activity-Based Costing can be complicated and costly. D. Activity-Based Costing follows the same basic calculation methods as traditional costing approaches. E. None of the above OO O
Under which costing system non-manufacturing costs will not be included in calculating product costs? a. Absorption costing system only. b. None of the given answers C. Absorption costing and Variable costing systems. d. Activity based costing system only. e. Variable costing system only.
Which of the following statements about activity-based costing (ABC) is false? Group of answer choices Activity-based costing differs from traditional costing systems in that products are not cross-subsidized. 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. Activity-based costing is useful for allocating marketing and distribution costs. In activity-based costing, cost drivers are what cause costs to be incurred.
Which of the following statements regarding activity-based costing (ABC) is false? A. ABC is not an appropriate tool for analysing non-manufacturing costs. B. ABC can be used to analyse the profitability of customers. C. ABC evolved as a response to problems with traditional costing systems. D. ABC can be used to measure the cost of cost objects.
Which of the following statement is false? O The only difference between absorption costing and variable costing is howthe variable MOH is treated. O A traditional income statement uses absorption costing, where both variableand fixed manufacturing costs are included when calculating the productcost. O For external financial reporting purposes, GAP requires the traditionalformat income statement. O For external financial reporting purposes, companies need to classify theircosts as product costs or period costs following GAAP.
CLEAR MY CHOICE Which of the following statements is false? O a Volume-based costing has typically resulted in undercost for high-volume products and overcost for low-volume products. O b. Different cost allocation methods are constructed so that they typically result in the same or similar estimates of how much it costs to make a product. OC Activity-based costing typically provides less information about product costs while requiring more recordkeeping. O d. All the statements are false. O e. Activity-based costs per unit are always greater than volume-based costs per unit. Windows buii PAGE dows huil Sslacyl Jail NEXT P. ENG DELL
7. Which of the following statement is false? Multiple Choice a)The contribution margin income statement format separates costs according to cost behaviour. b)Fixed manufacturing overhead is treated as a period cost under absorption costing method. c)Fixed manufacturing overhead is treated as a product cost under absorption costing method. d)Variable costing method is more useful than absorption costing approach in internal and managerial decision-making. e)The absorption costing approach is used in external financial reporting.
Which of the following is NOT true? Multiple Choice Activity-based costing allocates some period costs to products Activity-based and traditional costing both allocate direct materials and direct Activity-based does not allocate all manufacturing costs to products Activity-based costing can be used for both internal and external reporting.
One disadvantage of activity-based costing is that it cannot be used for external reporting. This is because of the :following except It does not follow GAAP a O It may lead to accurate cost calculation b O It is very detailed compared to external reports needs .c O It might be subjective d O