The following conditions with departmental indirect-cost rates will result in allocation of costs similar to ABC costing except:
A) a single activity accounts for a sizable portion of the costs of the department
B) Significant costs are incurred on different activities within a department
C) several activities cause a sizable portion of the costs of the department
D) significant costs are incurred for different activities with different cost -allocation bases within a department

Question

Quizplus · Accepted Answer

The Answer of The following conditions with departmental indirect-cost rates will result in allocation of costs similar to ABC costing except:
A) a single activity accounts for a sizable portion of the costs of the department
B) Significant costs are incurred on different activities within a department
C) several activities cause a sizable portion of the costs of the department
D) significant costs are incurred for different activities with different cost -allocation bases within a department

The Following Conditions with Departmental Indirect-Cost Rates Will Result in Allocation