Question

Which of the following statements about activity based costing is not correct? Select one: a. A...

Which of the following statements about activity based costing is not correct?

Select one:

a. A disadvantage of activity based costing is the cost needed to implement the system

b. Activity based costing is good to use when products differ in age.

c. Activity based costing is efficient to implement when there is not a large difference in volumes of each product produced.

d. An advantage of activity based costing is the increased accuracy in pricing.

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Answer #1

Solution:

The incorrect statement about activity based costing is "Activity based costing is good to use when products differ in age."

Hence option b is correct.

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