Which of the following is a characteristic of ABC?
a. Improved financial reporting
b. aid to managers in determining product cost
c. used in place of job or process costing
d. use restricted to manufacturing entities
Answer: b. aid to managers in determining product cost
Reference: Chapter 8, Activity Based Costing, Managerial Accounting by Garrison
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Straight line method.
the comanies that use the ABC system.
A company may use more than one costing method concurrently.
the straight line method
The principal advantage of the completed-contract method is that