Which of the following is true of activity-based costing?
A)It is also called single-plantwide overhead costing.
B)It is helpful when companies manufacture one product.
C)It categorizes all indirect costs by activity.
D)The total overhead costs accumulate in one cost pool.

Question

Quizplus · Accepted Answer

Activity-based costing categorizes all indirect costs by activity, rather than accumulating them in one cost pool. It is also not limited to companies that manufacture one product and is not interchangeable with single-plantwide overhead costing.

Which of the Following Is True of Activity-Based Costing