8.3 Activity-Based Costing Flashcards
1
Q
Activity-based costing (ABC) is a response to the significant increase in ___________ costs resulting from the rapid advance of technology.
A
Indirect costs
2
Q
The inaccurate averaging or spreading of indirect costs over products or service units that use different amounts of resources is sometimes called
A
Peanut-butter costing
3
Q
Traditional Costing System
A
Volume-based costing system
4
Q
____________ based system uses a single cost pool to combine the costs in all the related accounts.
A
Traditional-based system (volume-based)
