Multiple Choice
A key reason for using an ABC system rather than a conventional cost system is because ABC assigns overhead costs:
A) because they are indirect costs.
B) more simply than a traditional cost system.
C) based only on transaction drivers.
D) to reflect differences required by different activities as well as customers.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Baldwin Printers has contracts to complete weekly
Q34: Traditional cost systems use actual departments or
Q35: In general,factories producing a more varied and
Q36: Different products consume different proportions of overhead
Q37: _ and _ are typically the measures
Q39: In general,the selection of activity cost drivers
Q40: Under traditional costing systems,selling and administrative costs
Q41: Practical capacity is used as the numerator
Q42: Capacity cost rates also change when the
Q43: Transaction drivers count how often an activity