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14 Which of the following statements about time-driven activity-based costing (TDABC) is/are likely to be true: 1. TDABC uses time as the allocation base for
14 Which of the following statements about time-driven activity-based costing (TDABC) is/are likely to be true: 1. TDABC uses time as the allocation base for indirect costs 2. To determine the amount of indirect cost that needs to be allocated to each product/service, TDABC simplifies this process by only requiring the organisation to keep track of the activity cost per minute for each activity. 3. TDABC is suitable to allocate all indirect cost items incurred by a company Statement 1 only Statement 2 only Statement 3 only Statement 1 and 2 only Statement 2 and 3 only Which of the following statements about support department cost allocation is/are true. 1. Support departments that provide services to itself should allocate a portion of its costs to itself. 2. If the support departments in an organisation mostly provide services to its operating departments (as opposed to the other support departments), then this factor would increase the likelihood of the organisation choosing the direct method instead of the reciprocal method. 3. Costs incurred by the Human Resources Department and Accounting Department of a manufacturing firm are examples of support department costs. Statement 1 only Statement 2 only Statement 2 and 3 only Statement 1 and 2 only Statement 1, 2 and 3
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