The following statements have been made in relation to activity-based costing: (1)
A、cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. (2) The overhead absorption rate (OAR) is calculated in the same way as the absorption costing OAR, and the same OAR will be calculated for each activity. 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、cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. (2) The overhead absorption rate (OAR) is calculated in the same way as the absorption costing OAR, and the same OAR will be calculated for each activity. Which of the above statements is/are true?
A、(1) only
B、(2) only
C、Neither (1) nor (2)
D、Both (1) and (2)
【参考答案及解析】
Statement (2) is not correct. Although the OAR is calculated in the same way as the absorption costing OAR, a separate OAR will be calculated for each activity.
Statement (2) is not correct. Although the OAR is calculated in the same way as the absorption costing OAR, a separate OAR will be calculated for each activity.