Which of the following points about the Activity-based costing (ABC) system is NOT a correct observation:     a. Under ABC the unit cost of a product will necessary be less than the unit cost under traditional full (absorption) costing.   b. Activities are considered resource drivers because they eat up resources necessary for the activities to happen.   c. ABC may generate results that are not suitable for external reporting under IFRS/GAAP.   d. Batch-level activities produce costs that may be in proportion to the number of units produced.

Q: Vhich of the following statements Is true with regard to activity-based costing? Multiple Cholce…

A: Activity Cost: It is a cost-effective method that identifies the activities in an organization and…

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Which of the following is a limitation of activity-based costing? More cost pools Poorer management…

A: Introduction: ABC costing also called as Activity based costing. According to the consumption cost…

Q: Time-driven ABC requires estimates of onl

A: Time-Driven Activity-Based Costing-: Time-driven ABC allows managers to document their expenses on…

Q: Possible terms: Activity-Based Costing Appraisal or Inspection Costs Batch-Level Activities…

A:

Q: Briefly explain two factors that tend to result in product cost distortion under traditional,…

A: Traditional volume based product costing system is a costing system in which total factory overheads…

Q: Which of the following is false about activity-based costing?   Implementing an activity-based…

A: Activity-Based Costing (ABC): Under activity-based costing the different cost is assigned to a…

Q: Which of the following statements is false ? a. Volume-based costing has typically resulted in…

A: There are two methods of costing that are in place generally. One is volume based costing and other…

Q: when backflush costing is used, managers generally do not use which of the following to keep tract…

A: Backflush costing refers to the method of product costing which is generally used in a Just - In…

Q: Explain why a costing system that uses a volume-based rate is likely to produce distorted…

A: A traditional volume-based cost allocation systems that use only drivers tend to vary directly with…

Q: all of the following are reasons to use backflush costing, except   a. Managers tend to use their…

A: The backflush costing follows the JIT (just-in-time) inventory system which reduces the costs…

Q: When comparing absorption costing to variable costing, all of the below are disadvantages of…

A: Solution: When comparing absorption costing to variable costing, all of the below are disadvantages…

Q: TRUE OR FALSE When absorption costing is used for external reporting, variable costing can still be…

A: There are various approaches which can be prepared for reporting purpose. Two of which are variable…

Q: 7. Which of the following costs should not be included in product costs for internal management…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: It is ridiculous to suggest that process costing may also be suited to service firms, as services…

A: Process Costing:   It is a method of cost accounting where manufacturing costs are collected and…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Which of the following statement is true under the Standared Costing System a. Standard cost is a…

A: Solution: Standard costing system is the system of cost estimation in the manufacturing process. It…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: Introduction Activity based Costing (ABC) is a method of assignment of overhead costs to the…

Q: Which of the following is most likely to be true of the manufacturing overhead costs assigned to a…

A: Answer: Option (a) is the correct answer. An ABC system will assign more manufacturing overhead…

Q: Which TWO of the following statements about activity-based costing (ABC) are true? a. Implementation…

A: Activity-based costing suitable when: A variety of products are created Overhead accounts for a…

Q: Demonstrate why expressing fixed costs on a per unit of activity basis is misleading and may result…

A: Companies can have two types of costs, fixed costs and variable costs, which together result in…

Q: Which of the following is FALSE regarding Variable Costing? O A. Net income will only change if the…

A: Variable costing is a technique of cost accounting where the fixed overheads are not included in the…

Q: Do you agree with the following statements? Check only those with which you agree. Check All That…

A: Variable Costing refers to those costs which are directly related to the production and changes with…

Q: The primary difference between variable costing and absorption costing is in variable costing,…

A: Absorption Costing: “Absorption costing is a method that allocates “direct labor, direct materials,…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Q: CLEAR MY CHOICE Which of the following statements is false? O a. Volume-based costing has typically…

A: Volume based costing and activity based costing are two type of costing methods that are used for…

Q: One disadvantage of activity-based costing is that it cannot be used for external reporting. This is…

A: ABC or Activity based costing is a technique in which various cost divers are used to calculate the…

Q: What is the basic difference between variable costing and absorption costing? a. Variable costing…

A: Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Q: Explain the implementation issues with Activity Based Costing including:            -lack of clear…

A: Activity-based costing (ABC) is costing method of assigning direct expenses and indirect expenses to…

Q: Which of the following statements is true? O a. Activity-based costs per unit are always greater…

A: The volume based costing represents the cost allocation to a single cost pool. The high volume…

Q: Why do product costing systems using a single, volume-based cost driver tend to overcost highvolume…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Which among the following is not true about traditional costing system? a. This method allocates…

A: Traditional costing is allocating the factory overhead to products based on the volume of the…

Q: Which of the following statements is not true regarding the use of variable and absorption costing…

A: Answer:   Option d.

Q: Which of the following is FALSE regarding Variable Costing? A. Net income will only change if the…

A: Variable costing is a cost concept in managerial accounting. In Variable costing, all variable costs…

Q: In activity-based costing, some manufacturing costs may be excluded from product costs TRUE FALSE

A: Lets understand the basics. Activity based costing is as the name suggest allocate cost based on the…

Q: Which of the following statements is true? O a. Activity-based costing typically provides less…

A: Volume based costing represents the product costing where factory overhead is allocated to the…

Q: Which one of the following is correct about variable costing systems? Select one: a. Normally result…

A: Under the variable costing system, the product cost includes direct material, direct labor, direct…

Q: Briefly discuss two methods of reducing the undesirable incentives associated with the use of…

A: Use of absorption costing can lead to undesirable incentives when evaluating the performance of a…

Q: Under which costing system non manufacturing costs will not be included in calculating product…

A: There are 2 major systems of costing : A. Variable costing method B. Absorption costing

Q: All of the following are reasons to use backflush costing, except Managers tend to use their limited…

A: When the costing is done after completion of production that is known as backflush costing.

Q: TRUE OR FALSE Companies that use just-in-time processing techniques will have significant…

A: A just-in-time inventory system is an inventory management system wherein the company makes the…

Q: Disadvantages of activity-based costing include which of the following? a. It is not acceptable…

A: Answer; d. Both a. and b.

Q: Which of the following statements is not false of costing​ systems?   A. ​Activity-based costing…

A: Introduction: Traditional costing is the more simplest method which typically delivers less accuracy…

Q: Which of the following statements is true with regard to activity-based costing? Multiple Cholce…

A: Activity-based costing is a method of costing that identify activities in an business and assigns…