Which of the following statements is true concerning activity-based costing (ABC)?
A)ABC can only be used in manufacturing.
B)ABC can be used for manufacturing,marketing,or administrative activities.
C)ABC should only be used for service companies.
D)ABC can be used for manufacturing and administrative activities,but not for marketing activities.

Question

Quizplus · Accepted Answer

ABC can be used to allocate costs to any activity or process within an organization, including manufacturing, marketing, and administrative activities. It is not limited to use only in manufacturing, nor should it only be used for service companies. Therefore, option B is the correct answer. Option A and D are incorrect because ABC can be used in both manufacturing and administrative activities. Option C is incorrect as it contradicts the fact that ABC can be used in manufacturing activities.

Which of the Following Statements Is True Concerning Activity-Based Costing