Which of the Following Statements About Activity-Based Costing (ABC) Is

question 133

Multiple Choice

Which of the following statements about activity-based costing (ABC) is not true? (CIA adapted)

• A) In ABC, cost drivers are used to link costs to products.
• B) ABC is useful for assigning marketing and distribution costs.
• C) ABC differs from traditional costing systems in that products are not cross-subsidized.
• D) ABC is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products.

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Definitions:

Molecular Formula

A notation that uses chemical symbols and numerical subscripts to represent the types and quantities of atoms in a molecule.

Valence

The combining capacity of an element or particle, often determined by the number of electrons that an atom can share, gain, or lose.

Formal Charge

A concept in chemistry that represents the charge assigned to an atom in a molecule, assuming that electrons in all chemical bonds are shared equally between atoms, irrespective of electronegativity.

Nitrogen Atoms

Atoms that have five electrons in their outer shell and are essential components of amino acids, proteins, and nucleic acids.