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QUESTION 48 The following conditions with departmental indirect-cost rates will result in allocation of costs similar...

QUESTION 48

  1. The following conditions with departmental indirect-cost rates will result in allocation of costs similar to ABC costing except:

    Significant costs are incurred on different activities within a department

    significant costs are incurred for different activities with different cost -allocation bases within a department

    a single activity accounts for a sizable portion of the costs of the department

    several activities cause a sizable portion of the costs of the department

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Answer #1

Option - 'D'

Conditions with departmental indirect-cost rates will result in allocation of costs similar to ABC costing except several activities cause a sizable portion of the costs of the department.

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