A Major Advantage in Changing from a Traditionally Based Costing

question 33

Multiple Choice

A major advantage in changing from a traditionally based costing system to an activity-based costing system is

• A)a company's customers can benefit from any reduction in costs.
• B)management will be able to identify the true cost of non-added-value activities.
• C)direct labour and material costs will be reduced.
• D)supplier costs will be reduced after the changeover.

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Definitions:

Human Capital

The aggregate of talents, understanding, and immaterial resources possessed by individuals that are capable of producing economic benefits.

Earnings Gap

The difference in average earnings between two distinct groups, typically referring to disparities based on gender, race, or education level.

College Education

The post-secondary educational experience and credentials obtained from attending a college or university.

Skilled Jobs

Positions that require special training, knowledge, or ability, often acquired through education or experience.