The Overhead Application Rate Is Lower When an Activity-Based-Costing Approach

question 128

Multiple Choice

The overhead application rate is lower when an activity-based-costing approach is used than when a traditional approach is used because _____.

• A)less costs are incurred
• B)more costs are directly traced
• C)costs are spread over more value-chain activities
• D)non-value-added costs are eliminated

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Definitions:

Wavelength

The distance between successive peaks of a wave, often used in the context of light, sound, and electromagnetic waves.

Hue

A color or shade in the spectrum, defined by its dominant wavelength.

Brightness

A visual perception that describes how light or dark a color appears; can also refer to the intensity of light.

Difference Threshold

The minimal detectable difference needed to discriminate between two stimuli.