Asked by
Yasmin Assis
on Oct 15, 2024
Verified
ABC systems ________.
A) usually will undercost complicated or complex products
B) will limit cost drivers to units of output
C) highlight the different levels of activities
D) will allocate costs based on volume
E) comply with GAAP
ABC Systems
Activity-Based Costing systems, which allocate overhead costs based on the activities that drive those costs, providing more accurate cost information.
Cost Drivers
Factors that cause the cost of an activity or process to change, used in strategic management to control and reduce costs.
Volume
The quantity of something, often used to refer to the total amount of stocks or contracts traded in a financial market.
- Master the theory and deployment of activity-based costing (ABC).
- Differentiate among various tiers of activities, including Unit-level, Batch-level, Product-level, and Facility-level.
- Understand the function of cost pools within Activity-Based Costing.
Verified Answer
CD
Learning Objectives
- Master the theory and deployment of activity-based costing (ABC).
- Differentiate among various tiers of activities, including Unit-level, Batch-level, Product-level, and Facility-level.
- Understand the function of cost pools within Activity-Based Costing.