Which of the following statements regarding activity-based costing (ABC) is false? A. ABC is not an appropriate tool for analysing non-manufacturing costs. B. ABC can be used to analyse the profitability of customers. C. ABC evolved as a response to problems with traditional costing systems. D. ABC can be used to measure the cost of cost objects.

Overheads are the indirect cost involved in the production process of the company. It is charged to…

Answered: Which of the following statements…

Which of the following statements regarding activity-based costing (ABC) is false? A. ABC is not an appropriate tool for analysing non-manufacturing costs.

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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Question

Which of the following statements regarding activity-based costing (ABC) is false?

ABC is not an appropriate tool for analysing non-manufacturing costs.

ABC can be used to analyse the profitability of customers.

ABC evolved as a response to problems with traditional costing systems.

ABC can be used to measure the cost of cost objects.

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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