Which of the following statements is true? O a. A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its costs for external reporting. O b. Traditional costing can be used for internal reporting. O. Activity based costing (ABC) can be used for external reporting. O d. Activity based costing can only be used in manufacturing companies O e. None of the given answers is correct.

Which of the following statements is true? O a. A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its costs for external reporting. O b. Traditional costing can be used for internal reporting. O. Activity based costing (ABC) can be used for external reporting. O d. Activity based costing can only be used in manufacturing companies O e. None of the given answers is correct.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5MC: Which of the following is a reason a company would implement activity-based costing? A. The cost of...

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?Which of the following statements is true Activity based costing can only be used in manufacturing companies Activity based costing (ABC) cannot be used for external reporting b O A company can either choose Activity-based costing (ABC) or the traditional costing system to allocate its .c O .costs for external reporting .None of the given answers is correct d O Traditional costing cannot be used for internal reporting e O
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