- 1 Marks
MI – Nov 2021 – L1 – SA – Q5 – Costing Methods
Identify the scenario in which Activity-Based Costing is NOT suitable.
Question
Activity-based costing is NOT suitable as a method of costing in which of the following circumstances?
A. Where absorption costing is required for inventory valuation
B. Where large proportion of production costs are overhead costs
C. Where products are provided to customer specifications
D. Where production process is not complex
E. Where direct labour costs are relatively small
Find Related Questions by Tags, levels, etc.
Report an error