Which of the following statement is not true in respect of Activity based costing ?

CS Executive · Cost and Management Accounting · PYQS · June 2018
Which of the following statement is not true in respect of Activity based costing ?
(A) Activity based costing improves control over overheads costs.
(B) Setting up equipment is a batch level activity.
(C) In Activity based costing each cost pool has its own predetermined overhead rate.
(D) Activity based costing is less expensive to implement than traditional costing.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Cost and Management Accounting

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