21.Which of the following are benefits of using activity based costing?
(1) It recognises that overhead costs are not always driven by the volume of production
(2) It does not result in under or over absorption of fixed overheads
(3) It avoids all arbitrary cost apportionments
(4) It is particularly useful in single product businesses
A.1and 2
B.1 only
C.2and 3
D.1and 4
答案：1 only
Activity based costing recognises that there are other factors than production volume which drive overheads. Overheads may still be under or over absorbed and arbitrary cost apportionments may still be required if activity based costing is used. Activity based costing is most likely to be useful where there is a wide and diverse product range.
