Using Non-Volume-Based Activity Drivers Allows Activity-Based Costing To

question 43

Multiple Choice

Using non-volume-based activity drivers allows activity-based costing to:

• A)assign more indirect costs to products whose production volume is higher.
• B)assign more direct costs to products whose production volume is higher.
• C)assign more indirect costs to products whose complexity is higher.
• D)assign more direct costs to products whose complexity is higher.

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Definitions:

Fatty Acid

Organic compound that consists of an acidic carboxyl group “head” and a long hydrocarbon “tail.” Can be saturated or unsaturated.

Hydrophilic

Describes a substance that dissolves easily in water.

Carboxyl Group

A functional group consisting of a carbon atom double-bonded to an oxygen atom and single-bonded to a hydroxyl group (-COOH), found in organic acids.

Role

The function or position that an entity typically occupies or is expected to occupy within a particular context or system.