Are the following statements about Activity Based Costing (ABC) true or false? In a system of ABC, a larger proportion of overheads is attributed to low volume products than in a traditional absorption costing system.
A、True
B、False
A、True
B、False
【参考答案及解析】
In a system of ABC, a larger proportion of overheads is charged to low volume products. In traditional absorption costing overheads are allocated in proportion to production volumes. This tends to allocate too small a proportion of overheads to low volume products.
In a system of ABC, a larger proportion of overheads is charged to low volume products. In traditional absorption costing overheads are allocated in proportion to production volumes. This tends to allocate too small a proportion of overheads to low volume products.