Activity Based Costing Systems MCQ (Multiple Choice Questions) PDF Download

In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as

1. different task
2. purpose cost
3. an activity
4. an allocation cost

In activity based costing system, the description of activity can be classified as

1. activity list
2. activity dictionary
3. active purpose
4. both a and b

The factors that accelerate the process of refining a costing system include

1. increase in product diversity
2. increase in indirect costs
3. product market competitions
4. all of above

In the activity based costing method implementation, the indirect costs are allocated by using the

1. no cost pool
2. One or two cost pools
3. sustained tracing
4. support tracing

The costing system, in which individual activities are identified as the cost object, is considered as

1. manufactured costing
2. activity based costing
3. allocation costing
4. base costing