3) Which of the following statements about activity-based costing is NOT true? A) Activity-based costing is useful for allocating marketing and distribution costs as well as indirect manufacturing costs. B) Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products. C) Activity-based costing seeks to distinguish batch-level, product-sustaining, and facility-sustaining costs, especially when they are not proportionate to one another. D) Activity-based costing differs from traditional costing systems in that products are not cross-subsidized.

3) Which of the following statements about activity-based costing is NOT true? A) Activity-based costing is useful for allocating marketing and distribution costs as well as indirect manufacturing costs. B) Activity-based costing is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products. C) Activity-based costing seeks to distinguish batch-level, product-sustaining, and facility-sustaining costs, especially when they are not proportionate to one another. D) Activity-based costing differs from traditional costing systems in that products are not cross-subsidized.

Name: 3) Which of the following statements about activity-based costing is
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Description: 3) Which of the following statements about activity-based costing is NOT true?A) Activity-based costing is useful for allocating marketing and distribution costs as well as indirectmanufacturing costs.B) Activity-based costing is more likely to resu

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

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