Which of the Following Is Generally True When a Company

question 66

Multiple Choice

Which of the following is generally true when a company compares activity-based costing (ABC) and traditional volume-based costing?

• A)ABC uses fewer cost drivers in an effort to reduce total costs.
• B)ABC allocates costs based primarily on production volume.
• C)ABC is less expensive.
• D)ABC is less likely to undercost complex, low-volume products.

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Definitions:

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by the cost of the investment.

Creative

Characterized by originality of thought or expression, leading to the invention or creation of something new or different.

Workplace Rage

Intense anger and aggression that occurs in the work environment, often resulting from stress, frustration, or perceived injustice.

Overtly Aggressive Behaviour

Behavior that is openly hostile or confrontational, often resulting in intimidation or bullying in various contexts.