Which of the following is not a characterization of activity-based costing?
A) identification of only variable costs
B) a focus on both operating and strategic decisions
C) identifying all resources used by activities regardless of how individual costs behave in the short run
D) using the cost hierarchy to allocate costs to products
E) identification of all costs used by activities

Question

Quizplus · Accepted Answer

Activity-based costing involves identifying all costs used by activities, including both variable and fixed costs. It also considers the cost hierarchy to allocate costs to products and focuses on both operating and strategic decisions. Therefore, identification of only variable costs is not a characterization of activity-based costing.

Which of the Following Is Not a Characterization of Activity-Based