Which of the following is not helpful to reduce risks around incorrect cost allocations?
A)Use appropriate overhead allocation algorithms.
B)Independent review and approval of overhead cost allocations.
C)Use technologies such as bar code or RFID to support accurate and timely tracking and recording of inventor movements.
D)Insist on using activity-based costing.

Question

Quizplus · Accepted Answer

Insisting on activity-based costing is not necessarily helpful in reducing risks around incorrect cost allocations as it may not be appropriate in all situations. Utilizing appropriate overhead allocation algorithms, independent review and approval of overhead cost allocations, and using technologies such as bar code or RFID to support accurate and timely tracking and recording of inventory movements are all helpful in reducing risks around incorrect cost allocations.

Which of the Following Is Not Helpful to Reduce Risks