Which of the Following Is Not a Benefit of Activity-Based

question 1

Multiple Choice

Which of the following is not a benefit of activity-based costing?

• A) More accurate product costing.
• B) Enhanced control over overhead costs.
• C) Better management decisions.
• D) Less costly to use.

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Definitions:

Payroll Tax

Levies placed on employers and employees, often determined as a fraction of the payroll expenses employers incur for their staff.

Workers' Compensation Insurance

Insurance that provides medical benefits and wage replacement to employees injured in the course of employment.

Payroll Amounts

The total sum of money an employer is obligated to pay its employees for a set period or on a given date.

Federal Unemployment Tax Rate

The rate at which employers are taxed to contribute to the United States’ federal unemployment funding.