The following statements have been made about activity-based costing. (1) Unlike traditional absorption costing, ABC identifies variable overhead costs for allocation to product costs. (2) ABC can be used as an information source for budget planning based on activity rather than incremental budgeting. Which of the above statements is/are true?
A、1 only
B、2 only
C、Neither 1 nor 2
D、Both 1 and 2
A、1 only
B、2 only
C、Neither 1 nor 2
D、Both 1 and 2
【参考答案及解析】
ABC is a method of absorption costing that uses cost drivers to calculate absorption rates per unit of overhead activity. It then apportions overhead costs to products. It is not a technique for identifying variable overhead costs. ABC can be used as a basis for preparing budgets. This approach to budgeting is called activity based budgeting (ABB).
ABC is a method of absorption costing that uses cost drivers to calculate absorption rates per unit of overhead activity. It then apportions overhead costs to products. It is not a technique for identifying variable overhead costs. ABC can be used as a basis for preparing budgets. This approach to budgeting is called activity based budgeting (ABB).