Which Statement About Costing Systems Is True

question 118

Multiple Choice

Which statement about costing systems is true?

• A) Due to technology and mass production, labour related allocation bases are sometimes considered arbitrary.
• B) Traditional costing systems use a three stage cost allocation process.
• C) Labour related allocation bases should never be used in service organisations.
• D) Activity based costing does not use machine hours or other volume based allocation bases.

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Definitions:

Role Ambiguity

A situation in which the expectations associated with a role are unclear, leading to confusion and potentially stress for the individual in that role.

Physical Aspects

The tangible and environmental attributes or conditions of a workplace that can affect the well-being and performance of employees.

Adaptive Response

The ability of an organism or organization to modify or change its behavior or processes in response to changes in its environment.

Psychological Demands

The cognitive and emotional requirements or stressors associated with a job role.