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Consider a situation where an activity-based costing system is in use rather than a conventional volume-based...

Consider a situation where an activity-based costing system is in use rather than a conventional volume-based costing system. Which of the following statements is/are true?

The use of activity-based costing eliminates the need to consider qualitative factors.

When an activity-based costing system is used, facility level costs will have to be analysed differently to the way they would be under a traditional volume-based costing system.

When an activity-based costing system is used, unit level costs will have to be analysed differently to the way they would be under a traditional volume-based costing system.

None of the given answers
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Answer #1

D.none of the given answers .

The use of activity based costing eliminates the need to consider qualitative factors is false.

When an activity-based costing system is used, facility level costs will have to be analysed differently to the way they would be under a traditional volume-based costing system, is false.

When an activity-based costing system is used, unit level costs will have to be analysed differently to the way they would be under a traditional volume-based costing system, false.

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