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:

Adenoids

Lymphatic tissue located in the nasopharynx that helps in immune defense against pathogens.

Axillary Lymph Nodes

Lymph nodes located in the armpit region that filter lymph and assist in the body's immune response.

Cardiovascular System

The body system comprising the heart and blood vessels, responsible for circulating blood to deliver oxygen and nutrients to tissues.

Lymphatic System

A network of tissues and organs that help rid the body of toxins, waste, and other unwanted materials, primarily involved in transporting lymph, a fluid containing infection-fighting white blood cells.