Which of the following statements is true of activity-based costing?
Options:
O The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs to the products.
O Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.
O In activity-based costing, direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs.
O Activity based costing is more suited to companies with high product diversity than companies with single product line.
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Home » Business » Which of the following statements is true of activity-based costing? Options: O The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs to the products.