Question

True or False: 1) Direct labor costs are usually included in the costs that are allocated...

True or False:

1) Direct labor costs are usually included in the costs that are allocated to activity cost pools in an activity-based costing system.

True or False:

2) In activity-based costing, a product margin may exclude costs from some of the company's activity cost pools.

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Answer #1
1) FALSE
Direct labor costs are not included in the costs that are allocated to activity cost pools in an activity-based costing system
Usually overhead costs are included in the costs that are allocated to activity cost pools in an activity-based costing system
2) TRUE
In activity-based costing, a product margin may exclude costs from some of the company's activity cost pools.
ABC excludes some non-manufacturing overhead costs
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