The main reason for the usage of Activity Based Costing, by replacing the traditional costing system is that: (A) The overhead recovery rates used in traditional costing system are inappropriate for decision-making (B) T
CS Executive · Cost and Management Accounting · PYQS · December 2017
The main reason for the usage of Activity Based Costing, by replacing the traditional costing system is that: (A) The overhead recovery rates used in traditional costing system are inappropriate for decision-making (B) The companies deal with more number of products at present (C) No scope for cause and effect relationship in traditional costing (D) The new manufacturing technology needs information for feedback of performance even the product is in progress
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Activity Based Costing (ABC)
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