An Advantage of Activity-Based Costing Compared with Traditional Costing Is

question 63

Multiple Choice

An advantage of activity-based costing compared with traditional costing is:

• A) linking overheads to cost drivers results in a fairer and more accurate costing.
• B) overhead allocation is objective rather than arbitrary.
• C) it is cheaper to implement.
• D) All of the above are advantages.

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Definitions:

Language

A system of symbols and rules used for communication, consisting of written, spoken, or gestural components that convey meaning.

Symbols

Objects, characters, figures, or colors used to represent abstract concepts or ideas, often with significant meaning within a cultural context.

Morpheme

The smallest grammatical unit in a language, incapable of further division without altering or destroying its meaning.

Meaning

The significance or understanding attached to symbols, words, or phrases.