CIMA Advanced Management Accounting P2 Question # 8 Topic 1 Discussion

CIMA Advanced Management Accounting P2 Question # 8 Topic 1 Discussion

P2 Exam Topic 1 Question 8 Discussion:
Question #: 8
Topic #: 1

Which of the following statements is TRUE about the activity based costing system when compared to absorption costing method?


A.

ABC is easier to administer than an absorption costing system


B.

ABC will be less detailed than an absorption costing system


C.

ABC will provide more accurate overhead allocation than absorption costing


D.

ABC will cost less to administer than an absorption costing system


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