Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. which statement/s related activity-based costing i

Which statement/s related activity-based costing is/are correct? Statement 1: short-term variable overhead costs should be...

80.2K

Verified Solution

Question

Accounting

Which statement/s related activity-based costing is/are correct? Statement 1: short-term variable overhead costs should be traced to products using volume-related cost drivers, such as machine hours or direct labour hours. Statement 2: long-term variable production overhead costs are partly driven by the complexity and diversity of production work, as well as by the volume of output. Statement 3: transactions undertaken by support department staff are the appropriate cost drivers for long-term variable overhead costs. Statement 4: overheads should be charged to products based on their 'usage of an activity'. A product's 'usage of an activity' is measured by the number of cost drivers used by that activity.
a.
Statement 1 only
b.
Statements 3 and 4
c.
Statements 1 and 2
d.
Statements 1,3 and 4

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students