ABC Provides More Accurate Product Costs Than Traditional Costing Because

question 114

Multiple Choice

ABC provides more accurate product costs than traditional costing because

• A) Traditional costing uses fewer cost pools for indirect costs
• B) Traditional costing is less likely to have indirect cost pools with similar cost behavior
• C) Activities are measurable events, and activity counts often make good cost drivers in ABC because there is a better cause-and-effect relationship with costs
• D) All of the above

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Definitions:

Mosquitoes

Mosquitoes are flying insects known for their role in spreading diseases to humans and other animals through their bites.

Ornamental Pond

a water feature designed for aesthetic purposes, often found in gardens or landscapes.

Social Cost

The total cost to society, including both private costs borne by individuals and external costs borne by others not involved in a transaction.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, built, and social components.