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:

CSR Campaign

A strategic initiative by a company to demonstrate its commitment to social responsibility and to contribute positively to society beyond its business interests.

Economic Opportunity

Circumstances that make it possible for individuals or businesses to thrive and prosper financially.

Evaluation

The process of assessing or judging the performance, effectiveness, or value of something.

Measure Progress

The process of evaluating the advancement or development of a project, student, or organization towards achieving specific goals.