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IIA Exam IIA-CIA-Part3 Topic 12 Question 75 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 75
Topic #: 12
[All IIA-CIA-Part3 Questions]

Which of the following statements is true regarding activity-based costing (ABC)?

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Suggested Answer: C

by Sabra at Apr 14, 2024, 10:44 PM

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France
7 months ago
I think B is the correct answer, ABC uses multiple activity-based cost drivers.
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Levi
7 months ago
I agree with Florencia, D makes sense because ABC is known for improving cost accuracy.
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Florencia
7 months ago
I disagree, I believe the correct answer is D. ABC provides more accurate product costing.
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Janessa
8 months ago
I think the answer is C, ABC can be used with job order or process costing.
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Gerald
8 months ago
I think D could be true because ABC costing requires more detailed data and can be more time-consuming.
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Rutha
8 months ago
I heard some people say that D) The primary disadvantage of an ABC costing system is less accurate product costing. What do you guys think?
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Glenn
8 months ago
I agree with ABC costing is flexible in that way.
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Tricia
9 months ago
I think the correct answer is C) An ABC costing system may be used with either a job order or a process cost accounting system.
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Ernie
9 months ago
Okay, so that leaves options C and D. I think C is the right answer. ABC can be used with either job order or process costing systems.
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Princess
10 months ago
Exactly. Option B is definitely wrong then. ABC uses multiple cost drivers, not just a single one.
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Malcolm
10 months ago
Woo-hoo, high five! I'm feeling good about this exam now. Bring on the next question!
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Lashawn
10 months ago
Seriously, that's just ridiculous. Okay, I think we've got it - the answer is C. Nice work, team!
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Roselle
10 months ago
Ha, less accurate product costing? What kind of answer is that? Whoever wrote this question must have a few screws loose.
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Arthur
10 months ago
Yep, that makes sense. And option D is wrong - the primary advantage of ABC is more accurate product costing, not less accurate.
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Silva
8 months ago
Yes, you're right. ABC helps in assigning overhead costs more accurately.
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Paulina
8 months ago
Option D is definitely wrong. ABC provides more accurate product costing.
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