Activity-based costing has less applicability in a process-costing environment because:
A)the use of activity-based costing makes the computational process more difficult
B)the products tend to be similar and thus use the resources in a similar manner
C)cost control in process costing is achieved by controlling the cost of the various processes rather than the individual activities
D)Both B and C are correct.

Question

Quizplus · Accepted Answer

In process costing, products tend to be similar and use resources in a similar manner, making it difficult to differentiate costs by activities. Instead, cost control is achieved by controlling the cost of the various processes. Therefore, both statements B and C are correct, making choice D the best answer.

Activity-Based Costing Has Less Applicability in a Process-Costing Environment Because