Which of the following statements is not correct?
A、Activity based costing is an alternative to traditional volume-based costing methods
B、Activity based costs provide an approximation of long-run variable unit costs
C、Activity based costing cannot be used to cost services
D、Activity based costing is a form of absorption costing
A、Activity based costing is an alternative to traditional volume-based costing methods
B、Activity based costs provide an approximation of long-run variable unit costs
C、Activity based costing cannot be used to cost services
D、Activity based costing is a form of absorption costing
【参考答案及解析】
ABC is an alternative to traditional volume based methods where production overhead isabsorbed on the basis of the volume of direct labour hours or machine hours worked. However, it is still a form of absorption costing because production overheads are absorbed into product costs. ABC identifies costs with support activities and the overhead costs of a product or service could reflect the long-run variable cost of that product or service. ABC can be used for costing services as well as products.
ABC is an alternative to traditional volume based methods where production overhead isabsorbed on the basis of the volume of direct labour hours or machine hours worked. However, it is still a form of absorption costing because production overheads are absorbed into product costs. ABC identifies costs with support activities and the overhead costs of a product or service could reflect the long-run variable cost of that product or service. ABC can be used for costing services as well as products.