Activity-based Costing MCQs

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1. Which of the following statements is true about Activity-based costing (ABC)?

 
 
 
 

2. In activity-based costing:

 
 
 
 

3. Dividing costs of the department into activity cost pools is known as:

 
 
 
 

4. To calculate activity rates, all of the following are necessary except:

 
 
 
 

5. Which of the following would not be deducted from sales in a management report prepared using ABC costing method?

 
 
 
 

6. Which of the following is the different concerning ABC costing when compared to traditional cost?

 
 
 
 

7. Which of the following is a true statement concerning ABC costing systems being used to generate external reports?

 
 
 

Next Quiz: Cost behavior and Cost estimation MCQs

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