Which of the following statements is true?
A) One of the lessons learned from activity-based costing (ABC) is that all costs are really a function of volume.
B) The primary purpose of the plantwide and department allocation methods is allocating direct costs to specific products.
C) A problem with activity-based costing (ABC) is that it requires more recordkeeping than other methods.
D) Direct cost allocations are required for the plantwide and department allocation methods.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) requires more detailed recordkeeping because it involves tracking costs at a more granular level, associating them with specific activities rather than just volume or departments.

Which of the Following Statements Is True