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Which of the following statements is/are true about the disadvantages of Two-Stage Activity Based Costing?
Select ALL that apply.
Two-stage ABC does not conform to Generally Accepted Accounting Principles, therefore cannot be used for external reporting.
Two-stage ABC requires managers and cost accountants to examine every single item in overhead for application at two stages, resulting in a higher cost of accounting and management.
Two-stage ABC is more effective when a department creates many different products of varying complexities.
Two-stage ABC uses more allocation bases and cost drivers resulting in more accurate costing.