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