Which of the following statements is true of activity-based costing?
A) In activity-based costing, direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs
B) The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs to the products.
C) Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.
D) Activity based costing is more useful to companies with high product diversity than companies with single product line .
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.
