Activity-based Costing MCQs

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 26, 2023

1. Which of the following statements is true about activity-based costing (ABC)?
2. In ABC:
3. Dividing departmental costs into activity cost pools is known as:
4. To calculate activity rates, all of the following are necessary except:
5. Which of the following would not be deducted from sales in a management report prepared using ABC?
6. Which of the following is different in ABC when compared to traditional costing?
7. Which of the following is a true statement concerning the use of ABC systems to generate external reports?

Next Quiz: Cost Behavior and Cost Estimation MCQs

Activity-based Costing MCQs FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.