Mathematics · Activity Based Costing

Which THREE of the following statements about activity-based costing (ABC) and traditional costing systems (absorption costing and marginal costing) are correct? A. No over-absorption or under-absorption of overheads can occur under ABC B. ABC is useful for businesses which have high overheads in their cost structure C. ABC is not suitable for use in businesses that provide services D. Marginal costing understates the true cost of a product when compared to ABC E. ABC is better than absorption costing in understanding what causes costs to be incurred F. Both ABC and marginal costing treat all fixed costs as product costs