IIA Exam IIA-CIA-Part3 Topic 7 Question 70 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 70
Topic #: 7

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

AAn ABC costing system is similar to conventional costing systems in how it treats the allocation of manufacturing overhead.

BAn ABC costing system uses a single unit-level basis to allocate overhead costs to products.

CAn ABC costing system may be used with either a job order or a process cost accounting system.

DThe primary disadvantage of an ABC costing system is less accurate product costing.

Show Suggested Answer

Suggested Answer: C

by Belen at Dec 22, 2023, 10:56 PM

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