Answer the following statements true (T) or false (F)
1. Activity-based costing refines the cost allocation process even more than traditional allocation costing systems.
2. The first step in developing an activity-based costing system is to identify the activities that will be used to allocate the manufacturing overhead costs.
3. Indirect costs allocated to products using activity-based costing are more accurate than traditional allocation systems.
4. Companies with diverse products can obtain better costing information by using a single plantwide rate for allocating manufacturing costs.
5) For a centralized company, the major planning and controlling decisions are made by top management.
1. TRUE
2. TRUE
3. TRUE
4. FALSE
5. TRUE
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