Which of the following statements does not describe an activity-based costing system?
A) Activity-based costing systems are more complex and costly than traditional systems.
B) Activity-based costing systems may only be used by service companies.
C) Activity-based costing systems are used in both manufacturing and nonmanufacturing companies.
D) Activity-based costing systems can create more accurate product costs.

Question

Quizplus · Accepted Answer

Activity-based costing (ABC) systems are not limited to service companies; they are applicable and used in both manufacturing and nonmanufacturing (including service) companies to allocate costs more accurately based on activities.

Which of the Following Statements Does Not Describe an Activity-Based