BUS-A 325 #3

BUS-A 325#3 - system can also be prorated(allocated to CGS and inventory accounts C The total manufacturing overhead variance will be the same

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BUS-A 325 #3 Which one of the following characteristics is associated with standard cost variance analysis for manufacturing overhead under a traditional versus an activity-based cost (ABC) system? A) The traditional cost system does not meet the current International Financial Reporting Standards for internal control and product costing. B) Cost variances under an ABC system must be closed to cost of goods sold (CGS), while those calculated under a traditional
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Unformatted text preview: system can also be prorated (allocated) to CGS and inventory accounts. C) The total manufacturing overhead variance will be the same under either system. D) The traditional system, but not the ABC system, is acceptable for income tax purposes. E) Under both cost systems a flexible budget (FB) is used for control purposes....
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This note was uploaded on 03/31/2010 for the course BUS-A 325 taught by Professor Campbell during the Spring '09 term at Indiana.

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