Question
An activity-based costing system Blank______.
Multiple select question.
uses numerous overhead cost pools
is used for external reporting
only assigns manufacturing costs to products
may exclude some manufacturing costs from product costs
Multiple select question.
uses numerous overhead cost pools
is used for external reporting
only assigns manufacturing costs to products
may exclude some manufacturing costs from product costs
Answers
GPT-4o mini
An activity-based costing system:
- uses numerous overhead cost pools
- may exclude some manufacturing costs from product costs
These two options accurately describe the nature of activity-based costing. It uses multiple cost pools linked to different activities and can exclude certain overhead costs from being assigned to products. It is primarily used for internal decision-making rather than external reporting and typically assigns all relevant manufacturing costs to products, making the other options less accurate.
- uses numerous overhead cost pools
- may exclude some manufacturing costs from product costs
These two options accurately describe the nature of activity-based costing. It uses multiple cost pools linked to different activities and can exclude certain overhead costs from being assigned to products. It is primarily used for internal decision-making rather than external reporting and typically assigns all relevant manufacturing costs to products, making the other options less accurate.