Which of the Following Is Not an Advantage of Activity-Based

question 113

Multiple Choice

Which of the following is not an advantage of activity-based costing over traditional volume-based costing systems?

• A)ABC may lead to cost control improvement as managers are charged for using activities.
• B)ABC is less likely than a traditional system to undercost complex, low-volume products.
• C)ABC is less costly to implement than traditional systems.
• D)ABC allows managers to get an understanding of the cost of their respective department's activities.

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Definitions:

Alfred Binet

A French psychologist best known for developing the first standardized intelligence test, which laid the foundation for modern intelligence testing.

Lewis Terman

An American psychologist best known for his revision of the Stanford-Binet Intelligence Scales and research on gifted children.

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