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Hello sir,
Can you please help me to solve this MCQ, which I found in revision kit,
The following statements have been made about ABC in a manufacturing environment:
1) ABC eliminates the use if volume as a means of measuring costs
2) Judgement may be required in selecting the drivers for a particular activityWhich statements are true/false?
Thanks
Fariha 🙂Statement 1 is false – there may be some costs for which volume is a sensible cost driver
Statement 2 is true – there is not always an obvious cost driver.
I do not understand why there is not an answer to the question in your Revision Kit!
There is an answer to this question but that’s wrong they mentioned that both statements are false.
Thank you so much sir 🙂
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