1-A major advantage of activity-based costing (ABC) is that it increases unit cost distortions arising from overhead allocations that often occur using traditional cost accounting systems. 

a. True 

b. False 

2-In accordance with the FASB Codification, which of the following would be classified as a support expense by the not-for-profit organization? 

a. The cost of the annual lakeshore cleanup activities. 

b. The cost to have an attorney review the organization's by-laws. 

c. A, B, and D. 

d. The cost of printing and distributing the annual report. 

e. The cost of a mailing to past contributors requesting donations for lakeshore cleanup. 

Answer rating: 100% (QA)

1False Explanation ActivityBased CostingABC is a costing approach that focuses on how cost ... View the full answer