If a company is considered a service entity and using the ABC method, such as a law office, the ____________would only contain costs to provide the service and would exclude period costs.Select answer from the options belowCost of Salescosting systemdirect materialsMOH

To effectively use the ABC system, a company must first identify:Question 5Answera.Overheads absorption baseb.Activities in the company that creates costsc.Cost driversd.Costs pools

The total cost per unit of MOH allocated to each product will be _________________when using traditional costing or ABC.Select answer from the options belowthe same or differentthe sameundetermineddifferent

Operating costing is suitable for .a.job order business.b.sugar industries.c.service industries.d.contractors.

Fill in the Blank QuestionFill in the blank question.In order for a service provider to use activity-based costing, they should classify costs by level.

A company uses the repeated distribution method to reapportion service department costs. The use of this method suggests: A the company’s overhead rates are based on estimates of cost and activity levels, rather than actual amounts B there are more service departments than production cost centres C the company wishes to avoid under or over absorption of overheads in its production cost centres D the service departments carry out work for each other.