Activity-Based Costing Normally Allocates Overhead Costs

question 40

Multiple Choice

Activity-based costing normally allocates overhead costs

• A)to products only.
• B)more accurately than traditional costing systems.
• C)to services, where as traditional costing systems normally allocate overhead costs to products.
• D)based on no more than three cost drivers.

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Definitions:

Insight Learning

A cognitive process where an individual suddenly realizes how to solve a problem without trial-and-error, often seen as a form of intuitive understanding.

Punishment By Removal

The punishment of a response by the removal of a pleasurable stimulus.

Negative Reinforcement

A response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Extinction

In behavioral psychology, the process through which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the response diminishing or disappearing.