[Managerial accounting] T/F for question #1 and #2 and multiple choice for quest

Question

[Managerial accounting] T/F for question #1 and #2 and multiple choice for question #3

1. Depreciation calculated using the units of production method is an example fo a fixed cost T/F

2. Within the relevant range, fixed and variable behave similiary T/F

3. Which of the follwoing statements is true?

a. Activity-based costing is a more detailed and complex costing method than is JIT costing.

b. Activity- based costing and JIT costing are incompatible

c. Activity-based costing is a simplified cost system that does not track costs through the sequence of manufacturing operations.

d. All of the above statements are true.

Thank you!!

Explanation / Answer

1. False

change in depreciation is due the change in activity level we can safely say that depreciation calculated under units of production method is of the nature of variable cost.

2. False

Because fixed cost remains same even the output is zero but variable cost increases with increase in output level.

3. Answer : a

Activity - based costing is a more detailed and complex costing method than is JIT costing.

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