Accounting · Activity Based Costing
Which of the following are benefits of using activity-based costing? (i) It recognizes that overhead costs are not always driven by the volume of production. (ii) It does not result in under or over-absorption of fixed overheads. (iii) It avoids all arbitrary cost apportionments. (iv) It is particularly useful in single-product businesses.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(i) and (iv) only
- 2(ii) and (iii) only
- 3(i) and (ii) only
- 4(i) only✓
Correct answer
(i) only
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