Which of the Following Statements Concerning an Activity-Based Cost (ABC)

question 30

Multiple Choice

Which of the following statements concerning an activity-based cost (ABC) system is(are) correct?

• A)ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources.
• B)ABC analysis often relies on percentage allocations that are somewhat arbitrary.
• C)ABC analysis segregates the expenses of indirect and support resources by activities.
• D)all of the answer choices.
• E)Both ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources and ABC analysis segregates the expenses of indirect and support resources by activities.

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Definitions:

Uniform Dispersion

A distribution pattern within a population where each individual is evenly spaced throughout their habitat.

Territoriality

The behavioral pattern of animals or humans to defend a geographical area, often against others of the same species, to mark or maintain control over resources and reproduction.

Toxic Substances

Materials or compounds that can cause harm to living organisms when introduced into the body or environment.

Population Size

The total number of individuals within a defined area at a given time, important in understanding ecology and evolutionary biology.