Using an activity-based costing system (ABC)enables a firm to calculate overhead variances for:
A)Sales volume and production volume.
B)Spending and selling price.
C)Each activity-based cost driver.
D)Semi-variable overhead costs.
E)Federal income tax purposes.

Question

Quizplus · Accepted Answer

ABC allows a firm to assign costs to specific activities and cost drivers, enabling the calculation of overhead variances for each activity-based cost driver. It does not directly relate to sales volume, production volume, spending, selling price, semi-variable overhead costs, or federal income tax purposes.

Using an Activity-Based Costing System (ABC)enables a Firm to Calculate