A Difference in GAAP-Based Product Costing and Activity-Based Costing Is

Multiple Choice

A difference in GAAP-based product costing and activity-based costing is that under activity-based costing

A) all costs are classified as product and period costs, whereas under GAAP they are classified by behavior.
B) sales less cost of goods sold is classified as gross profit, whereas under GAAP this subtotal is titled contribution margin.
C) selling and administrative costs are allocated to products if they are incurred to provide resources that are consumed by unit-level, batch-level, or product-level activities.
D) all costs are traceable, whereas in GAAP-based costing some costs are allocated.