Activity-based costing systems: A. Are less complex and therefore less costly than volume-based systems B. Accumulate...

Activity-based costing systems: A. Are less complex and therefore less costly than volume-based systems B. Accumulate overhead costs by departments C. Can be used in manufacturing firms only D. Have separate overhead rates for each activity E. Eliminate multiple-stage cost allocation.

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The correct answer is

D. Have separate overhead rates for each activity

The overhead is divided into different categories under activity based costing which are then allocated on the basis of different drivers.

It is more costly

Does not accumulate by departments

Can be used anywhere

ekkarill92 answered 2 years ago

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Activity-based costing systems: A. Are less complex and therefore less costly than volume-based systems B. Accumulate...

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