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Which of the following is not true of activity-based costing (ABC)? If overhead costs are of a big amount, ABC can provide benefits in computing
Which of the following is not true of activity-based costing (ABC)?
If overhead costs are of a big amount, ABC can provide benefits in computing accurate product costs. | ||
ABC is beneficial, if the costs of many activities are directly related to production units. | ||
For direct manufacturing costs, there is no difference between traditional costing and ABC. | ||
Unlike traditional costing, ABC uses multiple bases in applying overhead. | ||
If a company makes a single product, ABC is no better than traditional costing. |
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