ABC – 2 Quiz to check your knowledge!
Activity Based Costing better known as ABC is method of costing which determines cost based on individual activity performed for product. This contrasts with traditional costing, which sometimes assigns costs using somewhat arbitrary allocation percentages for overhead or the so-called indirect costs. We can say that in order to overcome the inadequacies of traditional methods of overhead absorption, ABC has been devised.
Although ABC has many advantages over traditional costing system but at the same it has some disadvantages. ABC is more expensive to implement than traditional costing. It is a complex system which need lot of record for calculations and hence requires skilled manpower.Reports generated by this systems do not conform to generally accepted accounting principles (GAAP).
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- Question 1 of 10
1. Question1 points
Which of the following uses multiple activity ratesCorrect
Activity Based Costing use multiple activity ratesIncorrect
- Question 2 of 10
2. Question1 points
Activity Based Costing is aCorrectIncorrect
- Question 3 of 10
3. Question1 points
Terminology of ABC areCorrectIncorrect
- Question 4 of 10
4. Question1 points
The area in which activity based information is used for decision making areCorrect
ABC is used for every decision makingIncorrect
- Question 5 of 10
5. Question1 points
Which among of the following, are limitations of ABCCorrect
ABC is a complex system and needs due careIncorrect
- Question 6 of 10
6. Question1 points
The allocation basis that are used for applying costs to services or producers, in ABC are calledCorrectIncorrect
- Question 7 of 10
7. Question1 points
Costs are caused by a groups of things being made , handled or processed at a single time are reffered to asCorrectIncorrect
- Question 8 of 10
8. Question1 points
In which of the following cost measurement is requiredCorrectIncorrect
- Question 9 of 10
9. Question1 points
Types of cost driver(s)CorrectIncorrect
- Question 10 of 10
10. Question1 points
Activity Based Costing relates cost toCorrectIncorrect