It can be used with either process or job costing

It can be used only with job costing

It can be used on with process costing

It should not be used with process or job costing

It eliminates arbitrary assignment of overhead costs

Activity based costing systems are less reliable

The expense of obtaining cost data is relatively high

Control of overhead costs is enhanced

Products or services require the performance of activities and activities consume resources

Only costs that respond the unit level drivers are product costs

All manufacturing costs vary directly with units of production

Only variable costs are included in activity cost pools

Total costs

Net sales value at split off

Joint costs

Sales price less a normal profit margin at point of sale

Flexible budget amounts

Sales value at split off

Physical measures such as weights or volume

Engineering department

Engineering manager

Both

Neither