Which of the Following Is True for Activity-Based Costing (ABC)

question 93

Multiple Choice

Which of the following is true for activity-based costing (ABC) ?

• A) ABC considers the real costs associated with each product.
• B) With ABC, the company can estimate all costs coming from the customer, less revenue.
• C) The tools of ABC can be used to conduct customer profitability analysis.
• D) It identifies the costs of products and services based on the revenue they generate.
• E) ABC allocates indirect costs in proportion to direct costs.

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Definitions:

Acceptance And Commitment Therapy

is a form of psychotherapy that uses acceptance and mindfulness strategies, together with commitment and behavior change strategies, to increase psychological flexibility.

Systematic Desensitization

A behavioral technique used to help individuals overcome phobias and anxiety disorders through gradual exposure to the feared object or situation paired with relaxation exercises.

Realism

A philosophy that emphasizes the representation of the world in a truthful, objective manner, without idealization.

Continuum

A continuous sequence, range, or whole extent of items, elements, values, or conditions, where no part is fundamentally different from adjacent parts, although the extremes are quite distinct.