TB MC Qu.15-125(Static) Which one of the following characteristics ... Which one of...
60.1K
Verified Solution
Link Copied!
Question
Accounting
TB MC QuStatic Which one of the following characteristics
Which one of the following characteristics is associated with standard cost variance analysis for manufacturing overhead under a traditional versus an activitybased cost ABC system?
Multiple Choice
The total manufacturing overhead variance will be the same under either system.
The traditional cost system does not meet the current International Financial Reporting Standards for internal control and product costing.
The traditional system, but not the ABC system, is acceptable for income tax purposes.
Cost variances under an ABC system must be closed to cost of goods sold CGS while those calculated under a traditional system can also be prorated allocated to CGS and inventory accounts.
Under both cost systems a flexible budget FB is used for control purposes.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
