Similar to Other Costing Systems That Include Allocation, ABC Cost

question 44

Multiple Choice

Similar to other costing systems that include allocation, ABC cost information may be misleading for decision making purposes. To combat this problem, costs within an activity can be classified as:

• A) Flexible or committed
• B) Flexible or variable
• C) Fixed or committed
• D) Product or period

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Definitions:

Succinic Acid

A dicarboxylic acid with the molecular formula C4H6O4, used in the manufacture of dyes, perfumes, and pharmaceuticals.

Structure

The arrangement of atoms in a molecule or the manner in which atoms are bonded to form a molecule, which dictates the molecule’s properties and reactivity.

Organic Product

A molecule predominantly consisting of carbon and hydrogen that is the result of organic reactions.

Reaction

A method where one or more materials, known as reactants, undergo a transformation to produce one or more distinct materials, referred to as products.