Activity-based costing systems:
A)Accumulate overhead costs by departments.
B)Are less complex and therefore less costly than volume-based systems.
C)Can be used in manufacturing firms only.
D)Have separate overhead rates for each activity.
E)Eliminate multiple-stage cost allocation.

Question

Quizplus · Accepted Answer

Activity-based costing systems have separate overhead rates for each activity, which allows for a more accurate and precise allocation of costs to products or services.

Activity-Based Costing Systems