ABC Systems Differ from Traditional Costing Systems Because ABC Systems

question 39

Multiple Choice

ABC systems differ from traditional costing systems because ABC systems use:

• A) Multiple activity cost pools and cost drivers to allocate overhead costs
• B) Multiple activity cost pools and cost drivers to allocate direct costs
• C) More automation and information technology to allocate overhead costs
• D) Less automation and information technology to allocate overhead costs

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Definitions:

Status

The social position or ranking an individual holds within a society or group, often determined by factors like occupation, wealth, or family background.

Role

The behavior expected of an individual who occupies a given social position or status.

Status-role Complex

A concept in sociology that describes how an individual's social position (status) entails certain behaviors, expectations, and responsibilities (roles).

Interaction

The exchange or influence between two or more individuals, groups, or systems within a social context.