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Activity Based Costing allows a company to work out a more accurate cost per unit
False
True
Activity Based Costing is easier to explain than overhead absorption costing
True
False
Activity Based Costing can be used in service industries
true
false
Activity based costing is of limited benefit if overheads are only a small part of a company's costs
true
false
Cost drivers are factors that cause an activity to incur costs
true
false
Activity based costing is a simpler system than traditional costing
True
False
Activity-based costing is most effective in companies that manufacture only one product
False
True
Activity rates (driver rates) in ABC should be calculated based on the budgeted activity of the period
False
True
