A Basic Assumption of Activity-Based Costing (ABC) Is That

question 33

Multiple Choice

A basic assumption of activity-based costing (ABC) is that:

• A) All manufacturing costs vary directly with units of production.
• B) Products or services require the performance of activities and activities consume resources.
• C) Only costs that respond to unit-level drivers are product costs.
• D) Only variable costs are included in the activity cost pools.

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Definitions:

Fast Mapping

A cognitive process in early language development where children rapidly learn and infer the meaning of new words from minimal exposure.

Pragmatics

The branch of linguistics dealing with the use of language in social contexts and the ways in which people convey meaning through communication.

Social Speech

Speech that is directed towards communicating with others and is typically observed in social contexts.

Egocentric Speech

Speech that is focussed on oneself and not adjusted for the listener's perspective, commonly observed in young children.